KING OF PRUSSIA, PA — Nocopi Technologies (OTCQB: NNUP) acquired substantially all assets of Polymeric US for $2.65 million, a deal the company expects will more than triple revenue and expand manufacturing capacity in specialty inks and coatings across North America.
The acquisition adds Polymeric’s Kansas City production facility, formulation technologies, and diversified customer base to Nocopi’s operations as the company pursues broader scale within specialty materials markets.
The transaction included $1.75 million in cash, $750,000 in company equity, and a $150,000 holdback reserve. Nocopi issued 500,000 shares at an agreed price of $1.50 per share to satisfy the equity portion of the purchase price.
Polymeric US generated more than $5 million in revenue during the trailing 12 months ended March 31, according to Nocopi. The acquired company manufactures specialty inks and customized coatings from a 25,000-square-foot facility in Kansas City.
Nocopi stated the acquisition is expected to become accretive to earnings within a year.
The deal reflects continued consolidation among specialty materials and industrial formulation businesses, where companies are seeking expanded manufacturing footprints, customer diversification, and proprietary chemistry capabilities.
Following the acquisition, Polymeric will continue operating under its existing brand and leadership structure, including President Dr. Deverakonda Sarma.
Nocopi also appointed Gregory S. Babe as executive director of operations to oversee integration and operational management of the combined business.
Babe previously served as chief executive officer of Bayer Corporation and chief technology officer of Matthews International (Nasdaq: MATW).
In connection with the transaction, Babe agreed to purchase 133,334 shares of Nocopi stock in a private placement. An affiliate of Horizon Kinetics also agreed to purchase 133,334 shares at $1.50 per share.
Chief Executive Officer Matthew Winger stated the company plans to continue evaluating additional acquisitions within specialty materials and adjacent industrial technologies markets.
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