Nocopi Technologies Inc. (OTCQB: NNUP) is set to more than triple its revenue base after acquiring substantially all assets of Polymeric US Inc. for $2.65 million, a strategic move to scale its specialty inks and coatings business. The deal, announced May 21, adds a Midwest production facility and is expected to be accretive to earnings within a year.
"Our disciplined focus remains on growing per share value, and Polymeric fits that criteria precisely with its complementary formulation technologies, durable customer relationships, and real operating scale," Matthew Winger, Chief Executive Officer of Nocopi Technologies, said in a statement. "We will continue to pursue future opportunities... that we believe can deliver the kind of compounding growth our shareholders expect.”
The acquisition price consists of $1.75 million in cash, $0.75 million in Nocopi equity issued at $1.50 per share, and a $0.15 million holdback. For the twelve months ended March 31, 2026, Polymeric generated over $5 million in revenue, giving the combined entity a substantially larger platform for growth. The premium paid over Polymeric's pre-deal valuation was not disclosed.
The deal significantly expands Nocopi’s operational infrastructure and diversifies its customer base. Polymeric, founded in 1993, brings a 25,000-square-foot facility in Kansas City and a durable revenue stream, with its top five customers accounting for less than 25 percent of sales. This acquisition provides Nocopi with immediate scale and a stronger competitive position in the North American specialty materials segment.
To guide the integration and future operations, Nocopi has appointed Gregory S. Babe as Executive Director of Operations. Babe brings over four decades of industrial leadership, including roles as CEO of Bayer Corporation and Chief Technology Officer at Matthews International (NASDAQ: MATW). His appointment is seen as a move to bring large-scale operational discipline to the growing company.
Further aligning leadership with shareholder interests, Nocopi also announced a private placement of 266,668 shares at $1.50 each. Babe and an affiliate of investment firm Horizon Kinetics each committed to purchasing 133,334 shares, signaling strong insider and institutional confidence in the transaction's strategic rationale.
This article is for informational purposes only and does not constitute investment advice.
