As filed with the Securities and Exchange Commission on July 11, 2011.

Registration No. 333-

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form S-1

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

MacDermid Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware

2890

45-2568333

(State or other jurisdiction of

incorporation or organization)

(Primary Standard Industrial

Classification Code Number)

(I.R.S. Employer

Identification Number)

1401 Blake Street

Denver, Colorado 80202

(720) 479-3060

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

Daniel H. Leever

Chairman and Chief Executive Officer

1401 Blake Street

Denver, Colorado 80202

(720) 479-3060

(Name, address, including zip code, and telephone number, including area code, of agent for service)

Copies to:

Craig F. Arcella

Kris F. Heinzelman

Cravath, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, New York 10019-7475

(212) 474-1000

Fax: (212) 474-3700

Peter M. Labonski

Keith L. Halverstam

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022-4834

(212) 906-1200

Fax: (212) 751-4864

Approximate date of commencement of proposed sale to the public: As soon as practicable after the effective date of this Registration Statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ¨

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration number of the earlier effective registration statement for the same offering. ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.


Large accelerated filer ¨		Accelerated filer ¨		Non-accelerated filer x		Smaller reporting company ¨

CALCULATION OF REGISTRATION FEE

Title of Each Class of

Securities to be Registered

Amount
to be
registered

Proposed

maximum

offering price

per share

Proposed
maximum

aggregate

offering
price(1)(2)

Amount of
registration fees

Common Stock, $0.01 par value per share

$200,000,000

$23,220

(1)	Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933.

(2)	Does not include shares that the underwriters have the option to purchase to cover over-allotments. See “Underwriting”.

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

EXPLANATORY NOTE

This Registration Statement on Form S-1 (this “Registration Statement”) is being filed by MacDermid Group, Inc., a newly formed Delaware corporation, in connection with a proposed registered public offering of shares of its common stock (the “Offering”). Prior to the completion of the Offering, MacDermid Group, Inc. is a direct, wholly owned subsidiary of MacDermid Holdings, LLC, which, prior to the completion of the Offering, is the holding company parent for MacDermid, Incorporated, the main U.S. operating entity for the MacDermid business and the direct or indirect parent entity of all the MacDermid operating companies.

In connection with, and immediately prior to the completion of, the Offering, MacDermid Holdings, LLC and the MacDermid, Incorporated Profit Sharing and Employee Savings Plan, which is the existing minority stockholder of MacDermid, Incorporated, will exchange the capital stock of MacDermid, Incorporated for the common stock of MacDermid Group, Inc., and MacDermid Holdings, LLC will liquidate and distribute the shares of MacDermid Group, Inc. then held by it to the holders of its membership interests. Immediately following completion of the Offering, the common stock of the registrant will be owned by (1) the entities and persons who purchase the common stock of the registrant pursuant to the Offering, (2) the MacDermid, Incorporated Profit Sharing and Employee Savings Plan and (3) the entities and persons that, immediately prior to the completion of the reorganization transactions described above, own membership units in MacDermid Holdings, LLC, which include certain affiliates and funds of Court Square Capital Partners and Weston Presidio, Daniel H. Leever, the chairman and chief executive officer of MacDermid, Incorporated, and certain other current and former members of the management of the MacDermid business.

See “The Corporate Reorganization” in the prospectus that forms a part of this Registration Statement for additional information regarding the corporate structure of the MacDermid entities.

The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

SUBJECT TO COMPLETION, DATED JULY 11, 2011

LOGO

MacDermid Group, Inc.

Common Stock

This is the initial public offering of our common stock. We are selling shares of common stock. Prior to this offering, there has been no public market for our common stock. The initial public offering price of our common stock is expected to be between $ and $ per share. We intend to apply to list our common stock on the New York Stock Exchange under the symbol “MRD”.

Prior to the completion of this offering, the existing stockholders of MacDermid, Incorporated will exchange the capital stock of that entity for our common stock, and our parent entity will liquidate and distribute the shares of our common stock it then holds to the holders of its membership interests. These transactions will result in our holding all of the outstanding capital stock of MacDermid, Incorporated, the main U.S. operating entity for the MacDermid business and the direct or indirect parent entity of all the MacDermid operating companies. See “The Corporate Reorganization” for further information.

The underwriters have a 30-day option to purchase a maximum of additional shares to cover over-allotments of shares.

Investing in our common stock involves risks. See “Risk Factors” beginning on page 19.


	Price to Public	Underwriting Discounts and Commissions	Proceeds, before expenses, to MacDermid Group, Inc.
Per Share	$	$	$
Total	$	$	$

Delivery of the shares of our common stock will be made on or about , 2011.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.


Credit Suisse		Morgan Stanley		Deutsche Bank Securities


Stifel Nicolaus Weisel		Oppenheimer & Co.		RBC Capital Markets

The date of this prospectus is , 2011.

TABLE OF CONTENTS


PROSPECTUS SUMMARY			1
RISK FACTORS			19
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS			37
USE OF PROCEEDS			39
DIVIDEND POLICY			40
CAPITALIZATION			41
THE CORPORATE REORGANIZATION			42
DILUTION			43
SELECTED CONSOLIDATED FINANCIAL INFORMATION			45
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			49
BUSINESS			83
MANAGEMENT AND BOARD OF DIRECTORS			96
COMPENSATION DISCUSSION AND ANALYSIS			102


COMPENSATION TABLES AND NARRATIVE DISCLOSURES			108
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS			117
PRINCIPAL STOCKHOLDERS			120
DESCRIPTION OF CAPITAL STOCK			121
DESCRIPTION OF CERTAIN INDEBTEDNESS OF MACDERMID , INCORPORATED			125
SHARES ELIGIBLE FOR FUTURE SALE			129
CERTAIN MATERIAL U.S. FEDERAL INCOME AND ESTATE TAX CONSIDERATIONS FOR NON-U.S. STOCKHOLDERS			131
UNDERWRITING			134
LEGAL MATTERS			138
EXPERTS			138
WHERE YOU CAN FIND MORE INFORMATION			138
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS			F-1

We have not authorized anyone to provide any information or to make any representations other than those contained in this prospectus. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you.

Dealer Prospectus Delivery Obligation

Until , 2011 (the 25th day after the date of this prospectus), all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers’ obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

The principal executive offices of MacDermid Group, Inc. are located at 1401 Blake Street, Denver, Colorado 80202, and the telephone number at this address is (720) 479-3060. Our website address is www.macdermid.com. Information on, or accessible through, our website is not a part of, and will not be deemed to be incorporated into, this prospectus or the registration statement of which this prospectus forms a part. Investors should not rely on any such information in deciding whether to purchase our common stock.

PROSPECTUS SUMMARY

The following summary highlights certain information contained elsewhere in this prospectus. It does not contain all of the information that may be important to you in making an investment decision. You should read this entire prospectus carefully, especially the risks of investing in our common stock discussed under “Risk Factors” and the financial data and related notes included elsewhere in this prospectus, before making a decision to invest in our common stock.

Our Company

We are a global producer of high technology specialty chemical products and provider of technical services with a proven track record of success and innovation spanning our 89-year history. Our business involves the manufacture of a broad range of specialty chemicals, which we create by blending raw materials, and the incorporation of these chemicals into multi-step technological processes. These specialty chemicals and processes together encompass the products we sell to our customers in the electronics, metal and plastic plating, graphic arts, and offshore oil production and drilling industries. We refer to our products as “dynamic chemistries” due to their delicate chemical compositions, which are frequently altered during customer use. Our dynamic chemistries are used in a wide variety of attractive niche markets, and based on 2010 net sales, we believe that the majority of our operations hold leading positions in the product markets they serve, including, with respect to Electronic Solutions and Industrial Solutions, the number one or number two market share positions in the product markets they serve.

We generate revenue through the manufacture and sale of our dynamic chemistries and by providing highly technical post-sale service to our customers through our extensive global network of specially trained service personnel. Our personnel work closely with our customers to ensure that the chemical composition and function of our dynamic chemistries are maintained as intended. Among the more than 3,500 customers that we served as of December 31, 2010 are some of the world’s preeminent companies, such as LG, Molex, Samsung, FIAT, Ford, GM, Stanley Black & Decker and major companies in the offshore oil and gas industries. We believe that we are able to service our customers and attract new customers successfully through our extensive global network of 14 manufacturing sites and 21 technical service facilities, including 8 research and development centers, in 24 countries.

For the 12 months ended December 31, 2010, we generated net sales, operating profit and Adjusted EBITDA of $694.3 million, $86.4 million and $138.4 million, respectively, and for the three months ended March 31, 2011, we generated net sales, operating profit and Adjusted EBITDA of $178.5 million, $25.4 million and $37.2 million, respectively. For a reconciliation of net income (loss) attributable to MacDermid, Incorporated to Adjusted EBITDA, see “—Summary Consolidated Financial Data” and the footnotes contained therein.

We dedicate extensive resources to research and development and highly technical, post-sale customer service, while limiting our investments in fixed assets and capital expenditures. We refer to this approach as our “asset-lite, high-touch” business model, which emphasizes the “bookends” of our operations—innovation and technical service. As of December 31, 2010, nearly half of the approximately 2,000 people we employed were research and development chemists and experienced technical sales and service personnel. We believe that our business model enables us to focus on high growth market opportunities, maintain high margins and a high return on invested capital, and generate stable and strong cash flows. Given that our annual capital expenditures have been consistently less than 2% of our annual net sales, we believe that our cash conversion rate (the proportion of our profits converted into cash flow) is higher than a majority of the companies in our sector.

Our businesses are benefiting from global growth trends in many of our end markets, including the increasing use of electronic devices such as mobile phones and computers, growth in worldwide automotive

production and increasing oil production from offshore, sub-sea wells. In addition, over the last several years, we have increased our focus on growth in emerging markets. In 2010, approximately 39% of our net sales, approximately 38% of our gross profit and approximately 45% of our Adjusted EBITDA was generated in Asia (predominately in the greater China region) and Brazil as compared with 32% of our net sales, approximately 31% of our gross profit and approximately 36% of our Adjusted EBITDA in 2008 in the same regions. We believe that we are also effectively expanding the existing market for our dynamic chemistries by developing new applications within our existing markets. These new applications include: surface coatings for solar panels, plated antennas for smart mobile devices, flexographic plates for printing consumer packaging materials, decorative components for automobile interiors and control system fluids used to prevent oil from seeping from ocean floor valves.

Our Businesses

We report our business in two operating segments: an Industrial segment and a Printing segment. In the fiscal year ended December 31, 2010, our Industrial and Printing segments generated net sales of $535.9 million and $158.4 million, respectively. For the three months ended March 31, 2011, our Industrial and Printing segments generated net sales of $140.4 million and $38.1 million, respectively.

Industrial—The Industrial segment supplies technological solutions and dynamic chemistries used for finishing metals and non-metallic surfaces for automotive and other industrial applications, electro-plating metal surfaces, manufacturing circuit boards and other electronic devices for the electronics industry, fluids for the offshore oil and gas markets and specialty coated industrial films. As the regional sales mix in this segment has shifted over the past several years from more industrialized nations towards emerging markets, such as Asia and South America, we have invested significantly in these regions, including developing state-of-the-art facilities in Suzhou, China, and São Paulo, Brazil, to better serve our customers there. We have over 600 personnel and three manufacturing facilities in Asia and remain focused on further increasing our presence in the region.

The Industrial segment is composed of the following three businesses:

Electronic Solutions. We believe we are one of the leading global suppliers of chemical compounds to the printed circuit board fabrication industry based on our 2010 net sales. In this business, we design and formulate a complete line of proprietary “wet” dynamic chemistries that our customers use to process the surface of the printed circuit boards and other electronic components they manufacture. Our product portfolio in this business is focused on niches such as final finishes, through hole metallization and circuit formation, in which we are a small cost to the overall finished product, but a critical component for maintaining the products’ performance. Growth in this business is driven by demand in telecommunication, wireless devices and computers, and the increasing use of electronics in automobiles.

Industrial Solutions. We believe that we have a leading position worldwide in industrial metal and plastic finishing chemistries based on 2010 net sales. In this business, our dynamic chemistries are used for finishing, cleaning and providing surface coatings for a broad range of metal and non-metal surfaces. These coatings may have functional uses, such as improving wear and tear or providing corrosion resistance for appliance parts, or decorative uses, such as providing gloss finishes to components used in automotive interiors. As of December 31, 2010, we manufactured more than 1,000 chemical compounds for these surface coating applications, including cleaning, activating, polishing, electro and electroless plating, phosphatizing, stripping and coating, anti-tarnishing and rust inhibiting for metal and plastic surfaces. Growth in this business is primarily driven by increased world-wide automobile production and demand for appliances, computers and general engineering hardware.

systems that open and close critical valves for the deep water oil extraction and transportation process. Drilling fluids are used in control systems to operate valves on the ocean floor. We believe there is significant growth potential for this business as the oil and gas industry continues to grow, as evidenced by the $66.5 billion of capital that is forecasted to be spent globally by deep oil and gas producers from 2011 through 2016, a 109% increase over the prior five-year period, and as oil is produced from new sub-sea wells.

Printing—Through the Printing segment, we supply an extensive line of flexographic plates that are used in the commercial packaging and commercial printing industries. We manufacture photopolymers used to produce printing plates for transferring images onto commercial packaging, including packaging for consumer food products, pet food bags, corrugated boxes, labels and beverage containers. In addition, we also produce photopolymer printing plates for the flexographic and letterpress newspaper and publications markets. Our products are used to improve print quality and printing productivity. The growth in this segment is driven by consumer demand and advertising.

Our Competitive Strengths

We believe that the following are our key competitive strengths:

Leading Market Position in Attractive Niche Markets. We believe, based on our 2010 net sales, that a majority of our operations hold leading positions in the product markets they serve, including the number one or number two market share positions held by Electronic Solutions and Industrial Solutions in the product markets they serve. We also believe that the combination of our global presence, history of innovation, process know-how, strong commitment to research and development, dedication to customer service and broad range of proprietary products distinguishes us from our competitors, allowing us to maintain our leading market share positions. Furthermore, we believe the diversity of the niche markets we serve will enable us to continue our growth throughout economic cycles and mitigate the impact of a downturn in any single market.

Proprietary Technology and Service Oriented Business Model. Our commitment to technological innovation and our extensive intellectual property portfolio of over 750 issued patents enables us to develop our cutting-edge products. In order to continue to provide innovative products and highly technical service to our customers, we place a premium on maintaining a specialized and qualified employee base. Our global sales and service personnel possess extensive knowledge of and experience in our local markets. For instance, our technical management team serving our Asian markets has, on average, over 20 years of experience, including decades of joint product development with our key customers located in the greater China region. We believe that our proprietary technology, extensive industry experience and customer service-focused business model are difficult for our competitors to replicate. As a result, and in order to avoid the transition risks that go along with switching suppliers, customers elect not to switch from our products to those of our competitors. Switching suppliers generally does not make sense for our customers from a cost-benefit standpoint: the cost of our products is low relative to the potential cost savings, as switching expenses (including conducting expensive trials to ensure quality assurance and compliance with regulatory requirements, industry standards and internal protocols) can be significant.

The key role our products play in improving the efficacy of our customers’ manufacturing processes and reducing their total costs, combined with our extensive experience in local markets, our focus on highly technical customer service and the significant customer switching risks and costs inherent in our industry, have enabled us to establish and maintain our long-term customer relationships. We leverage these close relationships to identify opportunities for new products and position our portfolio of products within the ever-changing business environment.

enhancing our product offerings by drawing on our core competencies to extend our existing technologies into adjacent markets. We believe that the experience and knowledge gained through our history of innovation and track record of successfully entering new markets enables us to identify and capitalize on future growth opportunities.

•

We have, for example, grown our presence in emerging markets (specifically Asia (predominately in the greater China region) and Brazil), as demonstrated by the increase in net sales in these markets to 39% of total net sales in 2010 as compared to 32% of total net sales in 2008. We have updated facilities and increased headcount to expand our operations in the greater China region, which is now home to three state-of-the-art facilities and 600 employees. We are focused on continuing to increase our presence in emerging markets.

•

We generated 77% of our 2010 net sales from our higher growth, higher margin Industrial segment, compared to 61% of our net sales in 2005.

•

We have significantly expanded our Offshore Solutions business over the last five years, representing a 2005-2010 net sales compound annual growth rate of over 12%.

Strong Free Cash Flow Generation. Our high gross profit margins, combined with the low capital expenditure requirements and low fixed cost structure that result from our “asset-lite, high-touch” business model, allow us to generate strong free cash flow through all economic cycles. Our fixed asset base is modern and well-maintained and, accordingly, requires low, and often discretionary, capital expenditures. Our fixed manufacturing costs during 2010 were approximately 10% of our 2010 net sales, and our maintenance capital expenditures during 2010 were approximately 0.5% of our 2010 net sales. Our business model has allowed us to generate free cash flow even during economic downturns, including the global economic downturn that began in 2008. For example, in the year ended December 31, 2009, we generated $49.0 million in net cash flows provided by operating activities, and we used $6.5 million for capital expenditures and received $2.6 million of proceeds from the disposition of fixed assets.

Our key proprietary technology, service oriented business model and the high costs our customers would incur to switch suppliers have allowed us to achieve stable, industry-leading margins throughout our history and have protected our market share. The following chart highlights the stability of our margins since 1995:

Stable Financial Performance Through Economic Cycles

LOGO

(1)	Gross profit is defined as net sales minus cost of sales. The percentages represent gross profit margin, which is defined as gross profit divided by net sales.

Customer, Product, Application, End-Market and Geographic Diversity. We offer a broad range of products and services to diverse end markets, ranging from electronics to printing to offshore oil drilling. As of December 31, 2010, we served more than 3,500 customers globally, with no single customer accounting for more than 3% of our 2010 net sales. We have a significant presence in the rapidly growing Asian and Brazilian markets, with approximately $268 million in 2010 net sales to customers in those regions. In addition, each of our product lines serves numerous and often unrelated end markets. Our customer, product and geographic diversity help to mitigate the effects of any adverse event affecting a specific industry, end market or region.

LOGO

Limited Raw Material Concentration and Low Exposure to Energy Prices. We use in excess of 1,000 chemicals as raw materials in the manufacture of our proprietary products, with no single raw material representing more than 4% of our cost of sales in 2010. Further, the raw materials that are of greatest importance to our global operations are, in most cases, obtainable from multiple sources worldwide. In addition, energy costs, which have historically been volatile, only represented approximately 5% of our cost of sales in 2010.

Experienced Management Team with Significant Equity Investment. Our senior management team is led by Daniel H. Leever, our chairman and chief executive officer, who has approximately 30 years of experience with the MacDermid business and has been our chief executive officer since 1990. Our senior management team comprised of our executive officers and our divisional business managers has, on average, 27 years of industry experience and 16 years of experience with our company. Our management has been responsible for successfully implementing a number of strategic initiatives designed to enhance growth, improve productivity, reduce costs and expand margins. We believe that our employee ownership, stemming from our history as an employee-owned company including through our 401(k) plan, and use of a variable compensation structure has allowed us to maintain throughout our history an “owner mentality” among our workforce that has proven instrumental to our success.

Our Business Strategy

Our business strategy is focused on maximizing cash flow through our “asset-lite, high-touch” business model with continued emphasis on the “bookends” of our operations—innovation and technical service. Building on our competitive strengths, we intend to continue to grow our business, improve profitability and strengthen our balance sheet by pursuing the following integrated strategies:

Build Our Core Businesses. We believe that we can capitalize on our technical capabilities, sophisticated process know-how, strong customer relationships and deep industry knowledge to enhance growth and generate significant free cash flow.

•

Extend Product Breadth: We intend to extend many of our product offerings through the development of new applications for our existing products in our existing markets. For example, we are extending our capabilities for films used in in-mold decoration for high-end automotive interiors to exteriors and other applications. We are also leveraging our capabilities in plating technology in printed circuits and automotive applications to meet the emerging technological and environmental needs of our customers.

•

Continue to Grow Internationally with Our Customers: We intend to continue to grow internationally by expanding our product sales to our existing multinational customers as they penetrate emerging regions. We continue to make investments, especially in technical staff, in high-growth markets such as the greater China region and Brazil in order to better service our customers.

Leverage our Capabilities to Grow into New Markets and Applications. Building on our core competencies in product innovation, applications development and technical services, we intend to expand into new high-growth markets and extend our existing technologies to develop new products for new applications in markets that are adjacent to those we currently serve. Examples of our initiatives include:

•

Plating for Solar Cell Metallization: We are developing a chemistry solution using light-induced, electroless silver technology to enhance the conductivity and reduce the usage of screened silver paste on solar cells that will result in a higher manufacturing yield from such solar cells at a lower cost to our customers. In the longer term, we believe that we can extend our technology to create a new way of manufacturing crystalline silicon solar cells and eliminate the need for silver paste.

•

Plating for Molded Interconnect Devices: We are extending our “plating on plastics” technology into antenna manufacturing for smartphones. We believe that our technology results in a higher manufacturing yield and lower cost to our customers. We believe that we won the vast majority of new capacity installation of this product in 2010, thereby successfully increasing our market share.

•

Light-Emitting Diode (LED) Lighting Market: We are developing products for thermal management systems and using silver as a wire-bondable and reflective finish option to enhance energy conversion into light.

•

High Value PET Recycling: As worldwide demand for recycled polyethylene terephthalate (PET) grows, we are leveraging our strong position in Europe for specialized cleaners and defoamers that are used in recycling plastic products made of PET to expand that business globally, especially in emerging markets such as the greater China region and South America. Our specialized cleaners and defoamers enable recycled PET to be used in higher value applications such as bottle resin.

•

Digital Flexographic Printing: We have developed an innovative LUX^® process, which uses a flat top dot processing technology that significantly increases the quality and consistency of the printed image from a flexographic printing plate in a manner that is more efficient and cost effective for our customers.

•

Metals: We believe the metals industry presents an opportunity to introduce new products, and extend existing products, in an adjacent market. We define the metals industry as flat-rolled steel producers and processors, aluminum producers (including can making), and tube and pipe extruding. We have been

successful at penetrating the steel market with our tin plating chemistries, including cleaners and passivates. We have hired specialists in rolling lubricants and metal pre-treatment with the expectation of rapid expansion of our business in this market. We believe the addressable market for metals is over $750 million.

Maintain Our Technology Leadership Position. Our continued success in product innovation and applications development is a result of our focused commitment to technology research and development. This commitment has historically allowed us to sustain and enhance growth and profitability and further penetrate our target markets, including our existing customer base. Because the highly technical service we provide to our customers is an integral part of their successful use of our products, our service personnel become well acquainted with our customers. These close customer relationships enable us to identify and forecast the needs of our customers and draw upon our intellectual property portfolio and technological expertise to create new products.

Continue to Pursue Operational Efficiencies. We consistently focus on opportunities to reduce operating expenses through facility optimization, product and raw material rationalization and by maintaining a relatively low fixed cost structure that supports our growth strategy. In 2009, during the economic crisis, we permanently reduced costs by over $40 million annually by closing certain manufacturing facilities and executing a series of operational restructuring initiatives that streamlined our organizational structure and reduced our workforce in our manufacturing and general and administrative functions. These cost reductions resulted in an increase in our Adjusted EBITDA margin for 2010 by over 29.2% compared to 2008. For a reconciliation of net income (loss) attributable to MacDermid, Incorporated to Adjusted EBITDA, see “—Summary Consolidated Financial Data” and the footnotes contained therein. Our operational restructuring initiatives, combined with our decision to obtain additional sources for certain raw materials during the economic downturn, resulted in an increase in our gross profit margin percentage from 40.3% for the year ended December 31, 2008 to 46.5% for the year ended December 31, 2010, representing a 15.4% increase.

Maximize Cash Flow. Our ability to maintain strong cash flows results from our business model and growth strategies. Historically, we have been able to generate significant cash flow as a result of the low capital expenditure requirements and low fixed cost structure that result from our “asset-lite, high-touch” business model and by focusing on growing our higher margin businesses. We intend to continue to focus on maximizing our cash flow because it enables us to further invest in our business, reduce our debt and provide value to our stockholders.

Focus on Human Capital. The success of our business depends on our ability to continue to capitalize on our technical capabilities, unique process know-how, strong customer relationships and industry knowledge. Our technical expertise and history of innovation reflect the specialized and highly skilled nature of our research and development personnel. Our strong customer relationships and familiarity with our local markets result from the work of our highly talented and experienced sales and service personnel. As such, we intend to continue to focus on attracting, retaining and developing the best human talent across all levels of our organization, which is key to our ability to successfully operate and grow our business.

Risks Related to Our Business

Investing in our common stock involves substantial risk, and our ability to successfully operate our business is subject to numerous risks, including those that are generally associated with our industry. Any of the risks set forth in this prospectus under the heading “Risk Factors” may limit our ability to successfully execute our business strategy. You should carefully consider all of the information set forth in this prospectus and, in particular, should evaluate the specific risks set forth in this prospectus under the heading “Risk Factors” in deciding whether to invest in our common stock.

Corporate Information

MacDermid Group, Inc. was incorporated in Delaware on June 17, 2011. In connection with, and immediately prior to the completion of, this offering, the existing shareholders of MacDermid, Incorporated will exchange the capital stock of MacDermid, Incorporated for the common stock of MacDermid Group, Inc., and MacDermid Holdings, LLC will liquidate and distribute the shares of MacDermid Group, Inc. then held by it to the holders of its membership interests. Prior to the completion of this offering, MacDermid Group, Inc. is a direct, wholly owned subsidiary of MacDermid Holdings, LLC and has no material assets. Following the completion of this offering, MacDermid Group, Inc. will be a holding company with no material assets other than its direct 100% ownership interest in MacDermid, Incorporated, which is the main U.S. operating entity for the MacDermid business and the direct or indirect parent entity of all the MacDermid operating companies.

The diagram below illustrates our corporate structure immediately following completion of this offering (and assumes a public offering price of $ (the midpoint of the range set forth on the cover of this prospectus)):

LOGO

Please refer to “The Corporate Reorganization” for additional information about the corporate structure of the MacDermid entities.

MacDermid, Incorporated

MacDermid, Incorporated, the main U.S. operating entity for the MacDermid business and the direct or indirect parent entity of all the MacDermid operating companies, was established in Waterbury, Connecticut in 1922. On May 9, 1966, shares of MacDermid, Incorporated common stock were registered for trading. From June 22, 1966 to February 8, 1971, the shares traded on the over-the-counter system of trading and from February 8, 1971, when the NASDAQ stock exchange began trading, to February 25, 1998, the shares traded on the NASDAQ stock exchange. From February 26, 1998 to April 12, 2007, shares of MacDermid, Incorporated

traded on the New York Stock Exchange under the symbol “MRD”. On April 12, 2007, MacDermid, Incorporated was acquired by MDI Holdings, LLC, an entity formed by Court Square, Weston Presidio and Daniel H. Leever, our chairman and chief executive officer. MDI Holdings, LLC was the predecessor entity to MacDermid Holdings, LLC.

Principal Stockholders

Court Square Capital Partners

Court Square Capital Partners was formed in 2006 when the entire investment team of Citigroup Venture Capital spun out to form a new entity. Court Square Capital Partners manages investment funds with over $5 billion of assets, including Court Square Capital Partners I, LP and Court Square Capital Partners II, LP. Since 1969, Court Square Capital Partners and its predecessor, Citigroup Venture Capital, have closed over 250 transactions, including investments in Southern Graphics, Fairchild Semiconductor, Intersil, Euramax, Polyfibron Technologies, Triumph Group, Worldspan, Mohawk Carpet, Plantronics and York International. Court Square Capital Partners has a long standing relationship with the company. Joseph M. Silvestri, a managing partner of Court Square Capital Partners II, L.P., has been a director of MacDermid, Incorporated since 1999.

Assuming a public offering price of $ (the midpoint of the range set forth on the cover of this prospectus), immediately following the completion of this offering, Court Square will own approximately % of the aggregate outstanding common stock of MacDermid Group, Inc.

Weston Presidio

Weston Presidio, founded in 1991, is a private equity firm that has managed five investment funds aggregating over $3.3 billion of assets. The firm focuses its investment activities on growth companies in the consumer, business services and industrial growth sectors. With offices in Boston and San Francisco, Weston Presidio targets middle-market opportunities primarily in the United States. Assuming a public offering price of $ (the midpoint of the range set forth on the cover of this prospectus), immediately following the completion of this offering, Weston Presidio will own approximately % of the aggregate outstanding common stock of MacDermid Group, Inc.

Our Stockholder Philosophy

In addition to our long heritage of innovation and product leadership, we believe that certain principles dictate our relationship with our stockholders. Chief among these core business principles are the following:

•

We believe our relationship with our employees is fundamental to our ability to compete effectively. Much of our ability to compete revolves around our employees’ ability to invent new products and supply sales and service support to our customers. Approximately 50% of our employees are involved in these functions. As a result, we believe it is imperative that we continue policies that reward long tenure.

•

We develop new products and enter adjacent markets often involving multiyear horizons. We are committed to pursuing these opportunities even if short-term results are affected.

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We focus on building intrinsic value. We place emphasis on strategic growth in targeted focus areas. We measure intrinsic value, the present value of future cash flows, on a per share basis. We believe important factors in our ability to maintain and increase intrinsic value are relatively high margins and a low cost structure.

•

We are dedicated to maintaining a conservative investment approach and our belief that the return of capital through stock repurchases and dividends can be the most attractive use of capital.

•

We are committed to high standards of personal and corporate ethics and responsibility.

•

We hold a conviction that frequent, candid and reliable communications by our management are key to a successful relationship with our stockholders. We believe that, given the complex and unpredictable nature of the factors that drive demand for our products, it is not in the best interests of our stockholders for us to provide quarterly or annual “guidance” regarding future operating results.

We believe that the relationship between our company and our stockholders should be a partnership between like-minded parties, who are committed to these core principles while working toward a common goal. We hope that the individuals and entities purchasing our common stock in this offering will consider their investment in our common stock as a significant part of their long-term investment portfolio. Ideally, our stockholders will be individuals and entities that:

•

recognize that investing in our common stock is tantamount to acquiring a portion of our business and, accordingly, develop and maintain a comprehensive understanding of our company and the characteristics that differentiate us from our competitors; and

•

desire an active role in exercising their rights as stockholders, including by voting their shares of common stock at our stockholder meetings and by reaching out to our management team when questions about our company or its operations arise.

Terms Used in This Prospectus

Except where the context otherwise requires or where otherwise indicated, all references herein to (a) the “company”, “we”, “us” and “our” refer to, prior to the completion of this offering, MacDermid, Incorporated and its consolidated subsidiaries and, after the completion of this offering, MacDermid Group, Inc. and its consolidated subsidiaries (which will include MacDermid, Incorporated); (b) “Court Square” refer to the affiliates and funds of Court Square Capital Partners that, prior to the completion of this offering, hold membership interests in MacDermid Holdings, LLC and, following the completion of this offering, will own common stock of MacDermid Group, Inc.; and (c) “Weston Presidio” refer to Weston Presidio V, L.P. and its affiliates that, prior to the completion of this offering, hold membership interests in MacDermid Holdings, LLC, and, following the completion of this offering, will own common stock of MacDermid Group, Inc. References herein to “MacDermid Holdings, LLC”, “MacDermid Group, Inc.” and “MacDermid, Incorporated” refer only to each such entity and not to any of its subsidiaries.

Industry and Market Data

We obtained the industry, market and competitive position data described or referred to throughout this prospectus from our own internal estimates and research as well as from industry and general publications and research, surveys and studies conducted by third parties. Prismark Partners LLC is the primary source for our third-party data and forecasts relating to our Electronic Solutions business.

Industry publications, studies and surveys generally state that they have been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. While we believe that each of these studies, surveys and publications is reliable, we have not independently verified market and industry data from third-party sources. While we believe our internal company estimates and research are reliable and the market definitions are appropriate, neither such research nor these definitions have been verified by any independent source.

MacDermid^®, LUX^® and the MacDermid logo are our trademarks. Brand names, trademarks, service marks and trade names of other companies and organizations used in this prospectus are for informational purposes only and may be the property of their respective owners.

The Offering

Common stock offered by us

Common stock to be outstanding after this offering

Over-allotment option

The underwriters have an option to purchase a maximum of additional shares of common stock from us to cover over-allotments. The underwriters could exercise this option at any time within 30 days from the date of this prospectus.

Use of proceeds

We intend to use the net proceeds from this offering to repay or repurchase a portion of MacDermid, Incorporated’s outstanding indebtedness and to pay certain fees and expenses as set forth under “Use of Proceeds”.

Dividend policy

We intend to pay quarterly cash dividends in an amount equal to $ per share following completion of this offering. Whether we will do so, however, and the timing and amount of those dividends, will be subject to approval and declaration by our board of directors and will depend on a variety of factors, including the financial results, cash requirements and financial condition of the company, our ability to pay dividends under the agreement governing our senior secured credit facilities, the indenture governing our senior subordinated notes and any other applicable contracts, and other factors deemed relevant by our board of directors.

Because MacDermid Group, Inc. is a holding company, its cash flow and ability to pay dividends are dependent upon the financial results and cash flows of MacDermid, Incorporated and its subsidiaries and the distribution or other payment of cash to MacDermid Group, Inc. in the form of dividends or otherwise.

Risk factors

Investing in our common stock involves a high degree if risk. See “Risk Factors” for a discussion of factors you should carefully consider before deciding to invest in our common stock.

Proposed New York Stock Exchange symbol

“MRD”

Unless otherwise indicated, the number of shares of common stock that will be outstanding after this offering:

•

assumes the consummation of the Corporate Reorganization, which will be a condition to the consummation of this offering;

•

excludes approximately shares of our common stock that will be reserved for issuance under our compensation plans following the Corporate Reorganization;

•

assumes no exercise of the underwriters’ over-allotment option to purchase additional shares of our common stock; and

•

assumes the initial offering price will be $ per share (the midpoint of the range set forth on the cover of this prospectus).

Summary Consolidated Financial Data

MacDermid Group, Inc. was incorporated in Delaware on June 17, 2011. Prior to the completion of this offering, MacDermid Group, Inc. will have no material assets. Following the completion of this offering, MacDermid Group, Inc. will own all of the outstanding common stock of MacDermid, Incorporated, which is the main U.S. operating entity for the MacDermid business and the direct or indirect parent entity of all the MacDermid operating companies, and the consolidated financial statements of MacDermid Group, Inc. will reflect the assets, liabilities and results of operations of MacDermid, Incorporated and its subsidiaries. Accordingly, the following table sets forth the summary consolidated financial data of MacDermid, Incorporated and its subsidiaries for the years ended December 31, 2010, 2009 and 2008 and as of December 31, 2010 and 2009, which have been derived from the audited financial statements included elsewhere in this prospectus. The following table also presents the summary consolidated financial information of MacDermid, Incorporated and its subsidiaries for the three months ended March 31, 2011 and March 31, 2010 and as of March 31, 2011, which has been derived from the unaudited financial statements included elsewhere in this prospectus. The unaudited financial statements have been prepared on the same basis as the audited financial statements and, in the opinion of our management, include all adjustments, including normal recurring adjustments, necessary for a fair presentation in all material respects of the information set forth therein. Results for any historical period are not necessarily indicative of results for any future period.

This summary consolidated financial data should be read in conjunction with, and is qualified by reference to, “Use of Proceeds”, “Capitalization”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and notes thereto included elsewhere in this prospectus.


	Year ended December 31,									Three months ended March 31,
	2010			2009			2008			2011			2010
										(unaudited)
(amounts in thousands)
Statement of Operations Data:
Net sales	$	694,333		$	594,153		$	744,208		$	178,521		$	168,488
Cost of sales		371,223			333,963			443,939			94,980			89,667

Gross profit		323,110			260,190			300,269			83,541			78,821

Operating expenses:
Selling, technical and administrative		179,786			156,508			188,332			45,629			44,377
Research and development		21,005			20,103			25,093			5,359			5,048
Amortization		29,694			29,868			31,179			7,362			7,499
Restructuring (1)		6,234			4,228			12,931			(181	)		672
Impairment charges (2)		—			68,692			16,303			—			—

Total operating expenses		236,719			279,399			273,838			58,169			57,596


Operating profit (loss)		86,391			(19,209	)		26,431			25,372			21,225
Other income (expense):
Interest income		696			458			1,870			108			155
Interest expense (3)		(56,196	)		(60,740	)		(75,060	)		(14,088	)		(15,025	)
Miscellaneous income (expense) (4)		15,106			(5,020	)		9,655			(16,172	)		9,521

Income (loss) from continuing operations before income taxes, non-controlling interest and accumulated payment-in-kind dividend on cumulative preferred shares		45,997			(84,511	)		(37,104	)		(4,780	)		15,876
Income tax (expense) benefit		(21,723	)		6,427			(1,059	)		(1,145	)		(8,417	)

Income (loss) from continuing operations		24,274			(78,084	)		(38,163	)		(5,925	)		7,459
(Loss) income from discontinued operations, net of tax (5)		—			(4,448	)		2,316			—			—

Income (loss) from continuing operations		24,274			(82,532	)		(35,847	)		(5,925	)		7,459
Less net income attributable to the non-controlling interest		(343	)		(295	)		(207	)		(88	)		(80	)

Net income (loss) attributable to MacDermid, Incorporated	$	23,931		$	(82,827	)	$	(36,054	)	$	(6,013	)	$	7,379


	Year ended December 31,							Three months ended March 31,
	2010		2009		2008			2011		2010
								(unaudited)
(amounts in thousands, except share and per share amounts)
Other Data
EBITDA (6)(8) (unaudited)	$	148,394	$	19,291	$	91,360		$	20,675	$	42,593
Adjusted EBITDA (7)(8) (unaudited)	$	138,443	$	102,463	$	114,581		$	37,165	$	34,122
Owner Earnings (9) (unaudited)	$	49,676	$	45,146	$	(3,736	)	$	8,341	$	27,949

Net (loss) earnings attributable to MacDermid, Incorporated per share Basic:
(Loss) income from continuing operations	$		$		$			$		$
(Loss) income from discontinued operations	$		$		$			$		$
Net loss	$		$		$			$		$

Diluted:
(Loss) income from continuing operations	$		$		$			$		$
(Loss) income from discontinued operations	$		$		$			$		$
Net loss	$		$		$			$		$

Weighted Average Shares Outstanding
Basic
Diluted


	As of March 31, 2011
	(unaudited)
(amounts in thousands)
Balance Sheet Data:
Cash and cash equivalents	$	88,454
Total assets	$	1,311,010
Current installments of long-term debt and capital lease obligations	$	13,927
Long-term debt and capital lease obligations (excluding current portion)	$	753,865
Total debt and capital lease obligations	$	767,792
Total stockholders’ equity	$	269,528

(1)

Charges in 2010, 2009 and 2008 relate to amounts recorded in connection with our operational restructuring initiatives. For a detailed description of these operational restructuring initiatives see the discussion in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 19 to our audited financial statements included in this prospectus.

(2)

In 2009, we recorded (i) impairment charges of $41.2 million related to a write down of our goodwill balance to its estimated fair value as determined in accordance with ASC 350 “Goodwill and Other” (“ASC 350”), (ii) an impairment charge of $26.1 million related to a write down of an indefinite-lived purchased intangible asset to its estimated fair value as determined in accordance with ASC 350, (iii) an impairment charge of $0.2 million related to a write down of a finite-lived purchased intangible asset to its estimated fair value as determined in accordance with ASC 350 and (iv) an impairment charge of $1.2 million related to a write down of equipment to its estimated fair value as determined in accordance with ASC 360 “Property, Plant and Equipment”. In 2008, we recorded an impairment charge of $16.3 million related to a write down of our goodwill balance to its estimated fair value as determined in accordance with ASC 350. For a detailed description of these impairment charges see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 4 to our audited financial statements included in this prospectus.

(3)	Primarily reflects interest expense associated with our long-term debt for periods after the acquisition of MacDermid, Incorporated by MDI Holdings, LLC in 1997.

(4)

Represents mark-to-market (gain) loss on foreign denominated debt as a result of changes in foreign exchange rates. For a detailed description of these mark-to-market gains/losses, see the discussion of our miscellaneous (expense) income in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 16 to our audited financial statements included in this prospectus.

(5)	Reflects loss (gain) from discontinued operations related to the sale of our Offset Printing Blankets Business (“Offset”) in 2008 and the sale of our ColorSpan printing business in 2007. All operating results exclude amounts associated with discontinued operations.

(6)

EBITDA represents net (loss) income attributable to MacDermid, Incorporated before interest, taxes, depreciation and amortization. EBITDA is a non-U.S. GAAP measure. We present EBITDA because it is used by management to evaluate operating performance. We consider EBITDA an important supplemental measure of our performance because the calculation adjusts for items that we believe are not indicative of our core operating performance. Our management uses EBITDA to evaluate the operating performance of our business, to aid in period-to-period comparability, for planning and forecasting purposes and to measure results against forecasts. We believe EBITDA is also useful to investors because it is a measure frequently used by securities analysts, investors and others in the evaluation of companies.

We also use EBITDA because the 9.5% senior subordinated notes due 2017 of MacDermid, Incorporated (the “Senior Subordinated Notes”) and MacDermid, Incorporated’s senior secured credit facilities (the “Credit Facilities”) rely on EBITDA (with additional adjustments) to measure our ability to, among other things, incur additional indebtedness and to make payments, including dividends, that are subject to restrictions under our debt agreements.

EBITDA has limitations as an analytical tool, and it does not represent, and should not be considered an alternative to, net (loss) income or operating (loss) earnings as those terms are defined by U.S. GAAP. Some of these limitations are:

•

EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures;

•

EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

•

EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt; and

•

although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements.

Because of these and other limitations, EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using EBITDA only supplementally. See the consolidated statements of cash flows included in the consolidated financial statements of MacDermid, Incorporated included elsewhere in this prospectus. Please see footnote (8) below for a reconciliation of net income (loss) attributable to MacDermid, Incorporated to EBITDA.

(7)

We present Adjusted EBITDA as a further supplemental measure of our performance and because we believe these additional adjustments provide helpful information to investors and other interested parties evaluating our performance. We prepare Adjusted EBITDA by adjusting EBITDA to eliminate the impact of a number of items. We explain how each adjustment is derived in the subsequent footnote. Potential investors are encouraged to evaluate each adjustment for supplemental analysis. As an analytical tool, Adjusted EBITDA is subject to all the limitations applicable to EBITDA. In addition, other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. In evaluating Adjusted EBITDA, you should also be aware that in the future we may incur expenses similar to the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual items.

(8)	We reconcile net income (loss) attributable to MacDermid, Incorporated to EBITDA and Adjusted EBITDA as follows:


	Year ended December 31,									Three Months ended March 31,
	2010			2009			2008			2011			2010
(amounts in thousands)										(unaudited)
Net income (loss) attributable to MacDermid, Incorporated	$	23,931		$	(82,827	)	$	(36,054	)	$	(6,013	)	$	7,379
Provision (benefit) for income taxes		21,723			(6,427	)		1,059			1,145			8,417
Interest expense		56,196			60,740			75,060			14,088			15,025
Depreciation expense		16,850			17,937			20,116			4,093			4,273
Amortization expense		29,694			29,868			31,179			7,362			7,499

EBITDA (unaudited)	$	148,394		$	19,291		$	91,360		$	20,675		$	42,593
Mark-to-market adjustment on foreign denominated debt (a)	$	(17,395	)	$	5,067		$	(4,697	)	$	16,448		$	(9,784	)
Equity compensation expense (b)		389			337			398			98			93
Restructuring expense (c)		6,234			4,228			12,931			(181	)		672
Impairment charges (d)		—			68,692			16,303			—			—
Inventory write-down (e)		423			—			—			—			423
(Loss) income from discontinued operations, net of tax (f)		—			4,448			(2,316	)		—			—
Sponsor management fees (g)		398			400			602			125			125

Adjusted EBITDA (unaudited)	$	138,443		$	102,463		$	114,581		$	37,165		$	34,122

(a)

Represents mark-to-market (gain) loss on foreign denominated debt as a result of changes in foreign exchange rates. Please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for an additional discussion of these gains/losses.

(b)

Reflects non-cash stock compensation expense per ASC 718 “Compensation—Stock Compensation”.

(c)

Reflects (i) for the three months ended March 31, 2011, the reversal of charges related to accrued benefits no longer due to employees in our Industrial Europe operations and for estimated legal costs that were no longer required at our corporate business unit, (ii) for the three months ended March 31, 2010, charges related to headcount reductions in our Industrial segment, charges related to lease termination costs and charges for equipment write-down expense, (iii) in the year ended December 31, 2010, charges related to headcount reductions in our Industrial segment, charges for lease termination cost and long-term asset write-down expense in our Industrial Europe operations, (iv) in the year ended December 31, 2009, charges related to headcount reductions in our Industrial segment and charges related to the moving of certain manufacturing facilities, and (v) in the year ended December 31, 2008, charges related to headcount reductions in our Industrial segment and our Printing segment, equipment impairment charges and certain other charges associated with our 2008 operational restructuring programs. Please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for an additional discussion of such charges.

(d)

Reflects impairment charges of goodwill and intangible assets. Please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for an additional discussion of such charges.

(e)

Reflects inventory that was written off due to our exit from the dry film business in the first quarter of 2010. Please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for an additional discussion of such costs.

(f)

Reflects loss (gain) from discontinued operations related to the sale of Offset in 2008 and the sale of our ColorSpan printing business in 2007.

(g)

Reflects management fees paid to Court Square and Weston Presidio pursuant to certain advisory agreements. We will pay fees, as described in “Use of Proceeds”, to Court Square and Weston Presidio in connection with the termination of the advisory agreements and the consummation of this offering; however, following the consummation of this offering, we will no longer pay management fees to Court Square or Weston Presidio.

(9)

Owner Earnings is calculated by subtracting capital expenditures, net of proceeds from the disposition of fixed assets, from net cash flows provided by operating activities. Owner Earnings is a non-U.S. GAAP measure. We present Owner Earnings because it is used by management to determine the amount of cash available for repayment of indebtedness, dividends, stock purchases or acquisitions. We believe that Owner Earnings portrays a meaningful measure of past operating performance and is an important factor in the growth of stockholder value over time. We believe that Owner Earnings is useful to investors for these reasons. Owner Earnings should not be considered an alternative to net (loss) income or net cash flows provided by operating activities as those terms are defined by U.S. GAAP and may not be comparable to similarly titled measures used by other entities. Owner Earnings has limitations as an analytical tool because it does not indicate whether cash flows will be sufficient to fund cash needs or meet debt service requirements.

We reconcile net cash flows provided by operating activities to Owner Earnings as follows:


	Years ended December 31,									Three months ended March 31,
	2010			2009			2008			2011			2010
(amounts in thousands)										(unaudited)
Net cash flows provided by operating activities	$	56,094		$	49,033		$	4,414		$	9,858		$	28,691
Capital expenditures		(7,518	)		(6,508	)		(10,166	)		(1,525	)		(764	)
Proceeds from disposition of fixed assets		1,100			2,621			2,016			8			22

Owner Earnings (unaudited)	$	49,676		$	45,146		$	(3,736	)	$	8,341		$	27,949

Net Cash flows (used in) provided by investing activities		(8,918	)		(3,887	)		55,900			(1,517	)		(3,242	)
Net Cash flows used in continuing financing activity		(26,648	)		(54,352	)		(29,946	)		(26,917	)		(18,673	)

RISK FACTORS

Investing in our common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information in this prospectus, including the financial statements and related notes included elsewhere in this prospectus, before making an investment decision. If any of the following risks are realized, our business, financial condition, results of operations and prospects could be materially and adversely affected. In that event, the trading price of our common stock could decline and you could lose part or all of your investment.

Risks Related to Our Business and Industry

Conditions in the global economy may directly adversely affect our net sales, gross profit and financial condition and may result in delays or reductions in our spending that could have a material adverse effect on our results of operations, prospects and stock price.

Our products are sold in industries that are sensitive to changes in general economic conditions, including the construction, automotive and electronic manufacturing industries. Accordingly, our net sales, gross profit and financial condition depend significantly on general economic conditions and the demand for our specialty chemical products and services in the markets in which we compete. Delays or reductions in our customers’ chemical products purchasing that result from economic downturns would reduce demand for our products and services and could, consequently, have a material adverse effect on our results of operations, prospects and stock price.

During the recent global economic downturn, decreased global automotive demand and production cuts in the automotive markets, as well as reduced demand in the industrial and commercial packaging market, negatively impacted our results of operations, leading to decreased net sales and declines in gross profit margins and growth rates as well as lower factory utilization compared to peak levels. In addition, our customers’ financial difficulties during the most recent recession resulted in additions to reserves in our receivables portfolio. Although the effects of the recent global downturn on our business appear to be easing, we cannot assure you that this trend will continue. If the global recession continues or worsens, or if the global economy experiences future downturns, our net sales, gross profit and financial condition could be materially adversely affected. Uncertainty about future economic conditions also makes it difficult for us to forecast operating results and, as a result, to make decisions about potential investments and to plan effectively for future periods.

Our net sales and gross profit have varied depending on our product, customer and geographic mix for any given period, which makes it difficult to forecast future operating results.

Our net sales and gross profit vary among our products and services, and customer groups and markets, and therefore will likely be different in future periods than for historic or current periods. Overall gross profit margins in any given period are dependent in large part on the product, customer and geographic mix reflected in that period’s net sales. Market trends, competitive pressures, commoditization of products, increased component or shipping costs, regulatory conditions and other factors may result in reductions in revenue or pressure on the gross profit margins of certain segments in a given period. Given the nature of our business, the impact of these factors on our business and results of operations will likely vary from period to period and from product to product. For example, a change in market trends that results in a decline in demand for products or businesses that are then high margin will have a disproportionately greater adverse effect on our profits for that period. The varying nature of our product, customer and geographic mix between periods therefore leads to difficulties in measuring the potential impact of market, regulatory and other factors on our business and, as a result, challenges our ability to forecast our future operating results. Further, business acquisitions and divestitures can compound the difficulty in making comparisons between prior, current and future periods because acquisitions and divestitures, which are not ordinary course events, also affect our gross profit margins and our overall operating results.

Our future business initiatives may require capital expenditures that exceed management estimates, which could adversely affect our business, financial condition and results of operations.

Our “asset-lite, high-touch” business model is focused on limiting our investments in fixed assets and capital expenditures. Although we are dedicated to our business model, the markets for our proprietary technology and the needs of our customers are frequently changing, which makes it difficult for us to forecast the need for increases in capital expenditures and assets. In the future, we may be required to expend significantly greater capital, and maintain a greater number of fixed assets, to meet our customers’ needs and capitalize on new opportunities for growth in our businesses. However, we cannot assure you that any decision to increase spending and diverge from our business model will be successful. Further, if increases in spending on capital expenditures or costs incurred as a result of a more capital-intensive asset base are not offset by increases in net sales, our business, financial condition and results of operations could be materially and adversely affected.

We face intense competition, and our failure to compete successfully may have an adverse effect on our net sales, gross profit and financial condition.

Our industry is highly competitive, and most of our product lines compete against product lines from at least two competitors. We encounter competition from numerous and varied competitors in all areas of our business; however, our most significant competitors are Atotech (a division of Total), DuPont, Enthone (a division of Cookson Group Plc) and Shipley (a division of Dow Chemical). Further, in our Industrial segment, our products compete not only with similar products manufactured by our competitors, but also against a variety of chemical and non-chemical alternatives provided by our competitors. Industry consolidation may result in larger, more homogeneous and potentially stronger competitors in the markets in which we compete.

We compete primarily on the basis of quality, technology, performance, reliability, brand, reputation, range of products and services, and service and support. We expect our competitors to continue to develop and introduce new products and to enhance their existing products, which could cause a decline in market acceptance of our products. Our competitors may also improve their manufacturing processes or expand their manufacturing capacity, which could make it more difficult or expensive for us to compete successfully. In addition, our competitors could enter into exclusive arrangements with our existing or potential customers or suppliers, which could limit our ability, or make it significantly more expensive, to acquire necessary raw materials or to generate sales.

Some of our competitors may have greater financial, technical and marketing resources than we do and may be able to devote greater resources to promoting and selling certain products. Unlike many of our competitors who specialize in a single or limited number of product lines, we have a portfolio of businesses and must allocate resources across those businesses. As a result, we may invest less in certain of our businesses than our competitors in those businesses invest, and our competitors may therefore have greater financial, technical and marketing resources available to them with respect to those businesses.

Some of our competitors may also incur fewer expenses than we do in creating, marketing and selling certain products and may face fewer risks in introducing new products to the market. This circumstance results from the nature of our business model, which is based on providing innovative and high quality products and therefore may require that we spend a proportionately greater amount on research and development than some of our competitors. If our pricing and other factors are not sufficiently competitive, or if there is an adverse reaction to our product decisions, we may lose market share in certain areas, which could adversely affect our net sales, gross profit and our prospects. Further, because many of our competitors are small divisions of large, international businesses, these competitors may have access to greater resources then we do and may therefore be better able to withstand a change in conditions within our industry and throughout the economy as a whole.

If we do not compete successfully by developing and deploying new cost effective products, processes and technologies on a timely basis and by adapting to changes in our industry and the global economy, our net sales, gross profit and financial condition could be adversely affected.

Our substantial international operations subject us to risks not faced by domestic competitors, including unfavorable political, regulatory, labor, tax and economic conditions in other countries that could adversely affect our business, financial condition and results of operations.

Currently, we operate, or others operate on our behalf, facilities in 23 countries, in addition to our operations in the United States. We expect sales from international markets to represent an increasing portion of our net sales. Accordingly, our business is subject to risks related to the different legal, political, social and regulatory requirements and economic conditions of many jurisdictions. Risks inherent in our international operations include the following:

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agreements and intellectual property rights may be difficult to enforce and receivables difficult to collect through a foreign country’s legal system;

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foreign customers may have increased credit risk and different financial conditions, which may necessitate longer payment cycles or result in increased bad debt write-offs or additions to reserves related to our foreign receivables;

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foreign countries may impose additional withholding taxes or otherwise tax our foreign income, impose tariffs or adopt other restrictions on foreign trade or investment, including currency exchange controls;

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foreign exchange controls may delay, restrict or prohibit the repatriation of funds, and any restrictions on the repatriation of funds may result in adverse tax consequences and tax inefficiencies;

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U.S. export licenses may be difficult to obtain;

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there may be delays and interruptions in transportation of our products;

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fluctuations in exchange rates may affect product demand and may adversely affect the profitability in U.S. Dollars of products and services provided by us in markets where payment for our products and services is made in currencies other than the U.S. Dollar;

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general economic conditions in the countries in which we operate, including fluctuations in gross domestic product, interest rates, market demand, labor costs and other factors beyond our control, could have an adverse effect on our net sales in those countries;

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our results of operations in a particular country could be affected by political or economic instability on a country-specific or global level from various causes, including the possibility of hyperinflationary conditions, natural disasters and terrorist activities and the response to such conditions and events;

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we may experience difficulties in staffing and managing multi-national operations, including the possibility of labor disputes abroad;

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unexpected adverse changes in foreign laws or regulatory requirements may occur, including environmental, health and safety laws and laws and regulations affecting export and import duties and quotas;

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compliance with a variety of foreign laws and regulations may be difficult;

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we may be subject to the risks of divergent business expectations resulting from cultural incompatibility; and

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overlap of different tax structures may subject us to additional taxes.

Our business in emerging markets requires us to respond to rapid changes in market conditions in these countries. Our overall success as a global business depends, in part, upon our ability to succeed in different legal, regulatory, economic, social and political conditions. We cannot assure you that we will succeed in developing and implementing policies and strategies which will be effective in each location where we do business. Furthermore, any of the foregoing factors or any combination thereof could have a material adverse effect on our business, financial condition and results of operations.

We are exposed to fluctuations in foreign exchange rates, which may adversely affect our operating results and may significantly affect the comparability of our results between financial periods.

The results of operations and financial condition of each foreign operating subsidiary of MacDermid, Incorporated are reported in the relevant local currency and then translated to U.S. Dollars for inclusion in our consolidated financial statements. Exchange rates between these currencies and the U.S. Dollar in recent years have fluctuated significantly and are likely to continue to do so in the future. For the year ended December 31, 2010, approximately 68% of our net sales were denominated in currencies other than the U.S. Dollar and, for the quarter ended March 31, 2011, approximately 68% of our net sales were also so denominated. These foreign currencies included predominantly the Euro, British Pound Sterling, Hong Kong Dollar, Chinese Yuan, Japanese Yen and Brazilian Real. A depreciation of these currencies against the U.S. Dollar will decrease the U.S. Dollar equivalent of the amounts derived from operations reported in these foreign currencies and an appreciation of these currencies will result in a corresponding increase in such amounts. From time to time we may engage in exchange rate hedging activities in an effort to mitigate the impact of exchange rate fluctuations. For example, in 2009 and 2010, one of our operational units in the United Kingdom entered into an agreement with a financial institution to hedge against the risk of a stronger British Pound Sterling. We cannot, however, assure you that this arrangement or any other exchange rate hedging arrangements we may enter into from time to time will be effective. If our hedging activities are not effective or if additional hedging transactions are not available, changes in currency exchange rates may have a more significant impact on our results of operations.

Because we do not manage our foreign currency exposure in a manner that would eliminate the effects of changes in foreign exchange rates on our net sales, cash flows and fair values of assets and liabilities, our financial performance can be positively or negatively impacted by changes in foreign exchange rates in any given reporting period. Significant changes in the value of the Euro, Japanese Yen, Hong Kong Dollar or British Pound Sterling relative to the U.S. Dollar could also have an adverse effect on our ability to meet interest and principal payments on any Euro, Japanese Yen, Hong Kong Dollar and British Pound Sterling denominated debt outstanding, including borrowings in Euros under our Credit Facilities, and U.S. Dollar-denominated debt, including the Senior Subordinated Notes and U.S. Dollar-based borrowings under the Credit Facilities. In addition, currency fluctuations may affect the comparability of our results of operations between financial periods.

Besides currency translation risks, we incur currency transaction risk whenever one of our operating subsidiaries enters into either a purchase or a sales transaction using a different currency from the currency in which it records revenues. Given the volatility of exchange rates, we cannot assure you that we will be able to effectively manage our currency transaction or translation risks or that any volatility in currency exchange rates will not have an adverse effect on our financial condition or results of operations.

Changes in our customers’ products and processes can reduce the demand for our specialty chemicals.

Our specialty chemicals are used for a broad range of applications by our customers. Changes, including technological changes, in our customers’ products or processes may make our specialty chemicals unnecessary, which would reduce the demand for those chemicals. We have had, and may continue to have, customers that find alternative materials or processes and therefore no longer require our products.

We generally do not have long-term contracts with the customers in our Industrial segment, and the loss of customers in that segment could adversely affect our overall sales and profitability.

With some exceptions, our relationships with the customers in our Industrial segment are based primarily upon individual sales orders. As such, our customers in the businesses that comprise our Industrial segment could cease buying our products from us at any time, for any reason, with little or no recourse. If multiple customers within those businesses elected not to purchase products from us, our business prospects, financial condition and results of operations could be adversely affected.

Our net sales, gross profit and financial condition could be reduced by decreases in the average selling prices of products in the specialty chemicals industry.

Decreases in the average selling prices of our products may have a material adverse effect on our net sales, gross profit and financial condition. Our ability to maintain or increase our gross profit margin will continue to be dependent, in large part, upon our ability to offset decreases in average selling prices by improving production efficiency or by shifting to higher margin chemical products. We have also elected to discontinue a business as a result of sustained material decreases in the selling price of our products and our inability to effectively offset such decrease through shifts in our operations. If we are unable to respond effectively to decreases in the average selling prices of our products in the future, our net sales, gross profit and financial condition could be materially and adversely affected. Further, while we may elect to discontinue businesses that are significantly affected by such price decreases, we cannot assure you that any such discontinuation will mitigate the related declines in our financial condition.

Increases in costs or reductions in the supplies of specialty and commodity chemicals we use in our manufacturing process could materially and adversely affect our results of operations.

We use a variety of specialty and commodity chemicals in our manufacturing processes. Our manufacturing operations depend upon obtaining adequate supplies of raw materials on a timely basis. These raw materials are generally available from numerous independent suppliers, and we typically purchase our major raw materials on a contract or as needed basis from outside sources. The availability and prices of raw materials may be subject to curtailment or change due to, among other things, the financial stability of our suppliers, suppliers’ allocations to other purchasers, interruptions in production by suppliers, new laws or regulations, changes in exchange rates and worldwide price levels. Further, we cannot assure you that, as our supply contracts expire, we will be able to renew them or, or if they are terminated, that we will be able to obtain replacement supply agreements on terms favorable to us. Our results of operations could be adversely affected if we are unable to obtain adequate supplies of raw materials in a timely manner or if the costs of raw materials increase significantly.

From time to time, suppliers may extend lead times, limit supplies or increase prices due to capacity constraints or other factors. In addition, some of the raw materials that we use are derived from petrochemical-based feedstocks, and there have been historical periods of rapid and significant upward and downward movements in the prices of these feedstocks. While we selectively pass on changes in the prices of raw materials to our customers from time to time, there has historically been a time delay between increased raw material prices and our ability to increase the prices of our products. Further, we cannot always pass on these price increases due to competitive pricing pressure. Any limitation on, or delay in, our ability to pass on any price increases could have an adverse effect on our results of operations.

We may incur material costs relating to environmental and health and safety requirements or liabilities.

As a manufacturer and distributor of specialty chemicals and systems, we are subject to extensive U.S. and foreign laws and regulations relating to environmental protection and worker health and safety, including those governing discharges of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the cleanup of contaminated properties and occupational safety and health matters. We could incur significant costs, including cleanup costs, fines and sanctions and third-party claims for property or natural resource damage or personal injuries as a result of past or future violations of, or liabilities under, such laws and regulations.

Liability under some environmental laws relating to contaminated sites can be imposed retroactively, regardless of fault or the legality of the activities that gave rise to the contamination. Some of our manufacturing facilities have an extended history of chemical manufacturing operations or other industrial activities, and contaminants have been detected at some of our sites, and at a small number of offsite disposal locations. Although we do not anticipate that we will be materially affected by environmental remediation costs, or any related claims, at any such sites, the ultimate costs are difficult to accurately predict and the discovery of additional contaminants or the imposition of additional cleanup obligations at these or other sites could result in significant additional costs.

In addition, we have incurred, and will continue to incur, significant costs and capital expenditures in complying with environmental, health and safety laws and regulations. Future events, such as changes in or more rigorous enforcement of environmental laws and regulations, could require us to make additional expenditures, modify or curtail our operations or install pollution control equipment.

Global climate change legislation could negatively impact our results of operations or limit our ability to operate our businesses.

We operate production facilities in several countries. In many of the countries in which we operate, legislation has been passed, or proposed legislation is being considered, to limit greenhouse gases through various means, including emissions credits. To date, the requirements of such legislation have not had a material adverse effect on our results of operations. New or additional greenhouse gas regulation in the jurisdictions in which we operate, however, could negatively impact our future results from operations through increased costs of production. We may be unable to pass such increased costs onto our customers, which may decrease our gross profit and results of operations. In addition, the potential impacts of climate change regulation on our customers is highly uncertain and may adversely affect our business.

We may be unable to respond effectively to technological changes in our industry, which could reduce the demand for our products and adversely affect our results of operations.

Our future business success will depend upon our ability to maintain and enhance our technological capabilities, develop and market products and applications that meet changing customer needs and successfully anticipate or respond to technological changes on a cost effective and timely basis. Our inability to anticipate, respond to or utilize changing technologies could have an adverse effect on our business, financial condition or results of operations.

Our substantial indebtedness may adversely affect our cash flow and our ability to operate our business and fulfill our obligations under our indebtedness.

Assuming that the amount of net proceeds that we receive from this offering is $ and after giving effect to our intended use of proceeds as described in “Use of Proceeds”, as of March 31, 2011, we would have had approximately $ million of total indebtedness outstanding, including $ million of secured indebtedness outstanding under the Tranche B Facility and Tranche C Facility (each as defined below) that are part of the Credit Facilities (collectively, the “Term Loan Facilities”) and $ million of outstanding Senior Subordinated Notes.

Our substantial indebtedness could have important consequences to you. For example, it could:

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require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, dividends, research and development efforts and other general corporate purposes;

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increase the amount of our interest expense, because certain of our borrowings may be at variable rates of interest, which, if interest rates increase, would result in higher interest expense;

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increase our vulnerability to general adverse economic and industry conditions;

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limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;

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limit our ability to make strategic acquisitions, introduce new technologies or exploit business opportunities; and

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place us at a competitive disadvantage compared to our competitors that have less indebtedness.

If we cannot generate sufficient cash flow from operations to service our debt, we may need to refinance our debt, dispose of assets or issue equity to obtain necessary funds. We do not know whether we will be able to take any such actions on a timely basis, on terms satisfactory to us or at all.

In addition, the credit agreement governing the Credit Facilities and the indenture governing the Senior Subordinated Notes contain covenants that restrict our operations. These covenants restrict, among other things, our ability to incur additional debt, grant liens, pay cash dividends, redeem our common stock, make certain investments and engage in certain merger, consolidation or asset sale transactions. These restrictions could limit our ability to plan for or react to market conditions, meet extraordinary capital needs or otherwise take actions that we believe are in the best interest of the company. Further, a failure by us to comply with any of these covenants and restrictions could result in an event of default that, if not waived or cured, could result in the acceleration of all or a substantial portion of the outstanding indebtedness thereunder.

Our ability to borrow under our revolving credit facility depends on our level of indebtedness and our financial performance, and any deterioration in our results of operations or increase in our indebtedness could therefore have a material adverse effect on our liquidity.

A deterioration in our results of operations or an increase in our indebtedness may limit our access to borrowings under the revolving credit facility that is part of our Credit Facilities (the “Revolving Credit Facility”). Under the terms of the credit agreement governing the Credit Facilities, we are subject to certain financial maintenance covenants if our borrowings under the Revolving Credit Facility exceed $10.0 million for ten or more days in any fiscal quarter.

Our ability to comply with these financial maintenance covenants depends, in part, on our financial performance and may be affected by events beyond our control. Any material deviations from our operating forecasts could require us to seek waivers or amendments of these covenants, alternative sources of financing or reductions in expenditures. We may not be able to obtain such waivers, amendments or alternative financings, or if we obtain them, they may not be on terms favorable to us.

Despite the restrictions set forth in the agreements governing our existing indebtedness, we may be able to incur substantial additional indebtedness in the future. Increases in the aggregate amount of our indebtedness may also result in our being unable to comply with the financial maintenance covenants, and our inability to borrow under our Revolving Credit Facility as a result of such non-compliance could have an adverse effect on our cash flow and liquidity.

Our business and results of operations could be adversely affected if we fail to protect our intellectual property rights.

Our success depends to a significant degree upon our ability to protect and preserve our intellectual property rights and the rights to our proprietary processes, methods, compounds and other technology. Failure to protect our existing intellectual property rights may result in the loss of valuable technologies or in our having to pay other companies for infringing on their intellectual property rights. We rely on confidentiality agreements and patent, trade secret, trademark and copyright law as well as judicial enforcement of all of the foregoing to protect such technologies and intellectual property rights. In addition, some of our technologies are not covered by any patent or patent application.

We may be unable to prevent third parties from using our intellectual property and other proprietary information without our authorization or from independently developing intellectual property and other proprietary information that is similar to ours, particularly in countries where the laws do not protect our proprietary rights to the same degree as in the United States. The use of our intellectual property and other proprietary information by others could reduce or eliminate any competitive advantages we have developed, cause us to lose sales or otherwise harm our business. If it becomes necessary for us to litigate to protect these rights, any proceedings could be burdensome and costly, and we may not prevail.

Our patents also may not provide us with any competitive advantage and may be challenged by third parties. Further, our competitors may attempt to design around our patents. Our competitors may also already hold or have applied for patents in the United States or abroad that, if enforced or issued, could prevail over our patent rights or otherwise limit our ability to manufacture or sell one or more of our products in the United States or abroad. With respect to our pending patent applications, we may not be successful in securing patents for these claims. Our failure to secure these patents may limit our ability to protect inventions that these applications were intended to cover. In addition, the expiration of a patent can result in increased competition with consequent erosion of profit margins.

Competitors or other parties may, from time to time, assert issued patents or other intellectual property rights against us. If we are legally determined to infringe or violate the intellectual property rights of another party, we may have to pay damages, stop the infringing use, or attempt to obtain a license agreement with the owner of such intellectual property. Further, even if we are successful in defending our rights, such litigation could be burdensome and costly.

In some cases, we rely upon unpatented proprietary manufacturing expertise, continuing technological innovation and other trade secrets to develop and maintain our competitive position. While we generally enter into confidentiality agreements with our employees and third parties to protect our intellectual property, our confidentiality agreements could be breached and may not provide meaningful protection for our trade secrets or proprietary manufacturing expertise. In addition, adequate remedies may not be available in the event of unauthorized use or disclosure of our trade secrets or manufacturing expertise. Violations by others of our confidentiality agreements and the loss of employees who have specialized knowledge and expertise could harm our competitive position and cause our sales and operating results to decline as a result of increased competition.

In addition, we rely on both registered and unregistered trademarks to protect our name and brands. Failure by us to adequately maintain the quality of our products and services associated with our trademarks or any loss to the distinctiveness of our trademarks may cause us to lose certain trademark protection, which could result in the loss of goodwill and brand recognition in relation to our name and products. In addition, successful third-party challenges to the use of any of our trademarks may require us to rebrand our business or certain products or services associated therewith.

The failure of our patents, applicable intellectual property law or our confidentiality agreements to protect our intellectual property and other proprietary information, including our processes, apparatuses, technology, trade secrets, tradenames and proprietary manufacturing expertise, methods and compounds, could have a material adverse effect on our competitive advantages and could have a material adverse effect on our business, results of operations and stock price.

We may experience claims that our products infringe the intellectual property rights of others, which may cause us to incur unexpected costs or prevent us from selling our products.

We continually seek to improve our business processes and develop new products and applications. Many of our competitors have a substantial amount of intellectual property that we must continually monitor to avoid infringement. Although it is our policy and intention not to infringe third-party intellectual property, we cannot guarantee that we will not experience claims that our processes and products infringe issued patents (whether present or future) or other intellectual property rights belonging to others. For example, we are currently a defendant in a patent infringement claim, which has been vigorously opposed by us, relating to technology that is important to us, although we do not expect this claim to have a material adverse effect on our business, financial conditions, results of operations or reputation. From time to time, we oppose patent applications that we consider overbroad or otherwise invalid in order to maintain the ability to operate freely in our various business lines without the risk of being sued for patent infringement. If, however, patents are subsequently issued on any such applications by other parties, or if patents belonging to others already exist that cover our products, processes or technologies, we could experience claims for infringement or have to take other remedial or curative actions to

continue our manufacturing and sales activities with respect to one or more products. Such actions could include payment of damages, stopping the use, obtaining licenses from these parties or substantially re-engineering our products or processes in order to avoid infringement. We may not be able to obtain the necessary licenses on acceptable terms, or at all, or be able to re-engineer our products successfully. Moreover, if we are sued for infringement and lose, we could be required to pay substantial damages or be enjoined from using or selling the infringing products or technology. Further, intellectual property litigation is expensive and time-consuming, regardless of the merits of any claim, and could divert our management’s attention from operating our business.

We may not be able to consummate future acquisitions or successfully integrate acquisitions into our business, which could result in unanticipated expenses and losses.

We have made acquisitions of businesses in the past and may do so from time to time in the future. Consummating acquisitions of related businesses, or our failure to integrate such businesses successfully into our existing businesses, could result in unanticipated expenses and losses. Furthermore, we may not be able to realize any of the anticipated benefits from the acquisitions.

In connection with potential future acquisitions, the process of integrating acquired operations into our existing operations may result in unforeseen operating difficulties and may require significant financial resources that would otherwise be available for the ongoing development or expansion of existing operations. Some of the risks associated with acquisitions include:

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unexpected losses of key employees or customers of the acquired company;

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conforming the acquired company’s standards, processes, procedures and controls with our operations;

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coordinating new product and process development;

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hiring additional management and other critical personnel;

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negotiating with labor unions; and

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increasing the scope, geographic diversity and complexity of our operations.

In addition, we may encounter unforeseen obstacles or costs in the integration of businesses we may acquire. Also, the presence of one or more material liabilities of an acquired company that are unknown to us at the time of acquisition may have a material adverse effect on our financial condition or results of operations.

Chemical manufacturing is inherently hazardous and could result in accidents that disrupt our operations or expose us to significant losses or liabilities.

The hazards associated with chemical manufacturing and the related storage and transportation of raw materials, products and wastes are inherent in our operations. These hazards could lead to an interruption or suspension of operations and have an adverse effect on the productivity and profitability of a particular manufacturing facility or on our business as a whole. These potential risks include:

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pipeline and storage tank leaks and ruptures;

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explosions and fires;

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inclement weather and natural disasters;

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terrorist attacks;

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mechanical failure;

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unscheduled downtime;

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labor difficulties;

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transportation interruptions; and

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chemical spills and other discharges or releases of toxic or hazardous substances or gases.

These hazards may result in personal injury and loss of life, damage to property and contamination of the environment, which may result in a suspension of operations and the imposition of civil or criminal fines, penalties and other sanctions, cleanup costs and claims by governmental entities or third parties. We are dependent on the continued operation of our production facilities, and the loss or shutdown of operations over an extended period at our Morristown, Tennessee facility, which is our only Printing segment sheet production facility, or any of our other major operating facilities could have a material adverse effect on our financial condition and results of operations. We are not fully insured against all potential hazards incidental to our business.

Our Offshore Solutions business is subject to the hazards inherent in the offshore oil production and drilling industry, and we may incur substantial liabilities or losses as a result of these hazards.

In our Offshore Solutions business, we produce water-based hydraulic control fluids for major oil companies and drilling contractors to be used for potentially hazardous offshore deep water production and drilling applications. Offshore deep water oil production and drilling are subject to hazards that include blowouts, explosions, fires, collisions, capsizing, sinking and damage or loss to pipeline, subsea or other facilities from severe weather conditions. These hazards could result in personal injury and loss of life, severe damage to or destruction of property and equipment, pollution or environmental damage and suspension of operations. A catastrophic occurrence at a location where our products are used may expose us to substantial liability for personal injury, wrongful death, product liability or commercial claims. To the extent available, we maintain insurance coverage that we believe is customary in our industry. Such insurance does not, however, provide coverage for all liabilities, and we cannot assure you that our insurance coverage will be adequate to cover claims that may arise or that we will be able to maintain adequate insurance at rates we consider reasonable. The occurrence of a significant offshore deep water oil production or drilling event that results in liability to us that is not fully insured could materially and adversely affect our results of operations and financial condition.

Compliance with government regulations, or penalties for non-compliance, could prevent or increase the cost of the development, distribution and sale of our products.

We, our business, our products and our customers’ products are subject to regulation by many U.S. and non-U.S. supranational, national, federal, state and local governmental authorities. These regulations include customs and international trade laws, export control, antitrust laws, environmental requirements and zoning and occupancy laws that regulate manufacturers generally or govern the importation, promotion and sale of our products, the operation of our factories and warehouse facilities and our relationship with our customers, suppliers and competitors. Our products and manufacturing processes are also subject to ongoing reviews by certain governmental authorities.

New laws and regulations may be introduced, or existing laws and regulations may be changed or may become subject to new interpretations, that could result in additional compliance costs, seizures, confiscations, recalls, monetary fines or delays that could affect us or our customers. These effects could prevent or inhibit the development, distribution and sale of our products and may harm our reputation. In addition, changes in federal and state minimum wage laws and other laws relating to employee benefits could cause us to incur additional wage and benefit costs, which could negatively impact our profitability. Further, if any of the regulations to which we are subject were violated by our management, employees, suppliers, buying agents or trading companies, the costs of certain goods could increase, or we could experience delays in shipments of our goods, be subject to fines or penalties, or suffer reputational harm, which could reduce demand for our products, hurt our business and negatively impact our results of operations and stock price.

Further, in some circumstances, before we may sell some of our products, governmental authorities must approve these products, our manufacturing processes and facilities. In order to obtain regulatory approval of

certain new products, we must, among other things, demonstrate to the relevant authority that the product is safe and effective for its intended uses and that we are capable of manufacturing the product in accordance with current regulations. The approval process can be costly, time consuming and subject to unanticipated and significant delays. We cannot assure you that approvals will be granted to us on a timely basis, or at all. Any delay in obtaining, or any failure to obtain or maintain, these approvals would adversely affect our ability to introduce new products and to generate revenue from those products.

We are exposed to intangible asset risk.

We have recorded intangible assets, including goodwill in connection with business acquisitions. Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets of an acquired business. We do not amortize goodwill and other intangible assets that have indefinite useful lives; rather, goodwill and other intangible assets with indefinite useful lives are tested for impairment periodically. Indefinite-lived intangible assets are reviewed for potential impairment on an annual basis by comparing the estimated fair value of the indefinite-lived intangible assets to their carrying value. Goodwill is tested for impairment at the operations level annually, or when events or changes in circumstances indicate that goodwill might be impaired. Our annual test for goodwill impairment has historically been performed as of April 1st of each year. We have completed the testing as of April 1, 2011 and, in connection with this offering, we have changed the date of our annual impairment testing going forward to November 1st.

As a result of our annual and other periodic evaluations, we may determine that our intangible asset values need to be written down to their fair values. For example, during 2009, we recorded an impairment charge of $41.2 million related to our goodwill balance. We also recorded impairment charges in 2009 of $26.1 million related to a corporate tradename, $1.2 million in our Printing segment to write down the value of certain equipment and $0.2 million for a customer list intangible asset in our Industrial Europe business related to a strategic business decision to exit a certain market. If, as a result of our annual and other periodic evaluations, we determine that our intangible asset values need to be written down to their fair values, such write-downs could result in material charges that could be adverse to our operating results and financial position.

Our business may be adversely affected if we lose the services of key personnel or if we are unable to attract and retain additional key personnel.

Our business involves complex operations and therefore demands a management team and employee workforce that is knowledgeable and expert in many areas necessary for our operations. For example, Daniel H. Leever, our chairman and chief executive officer, joined the MacDermid business in 1982. In 1990, he was appointed president and chief executive officer and, in 1998, he became chairman of our board of directors (the “Board”). As a result of his extensive experience with our company and his high level of familiarity with our business, systems and processes, the loss of his service would cause disruptions in our business. Further, the process of attracting and retaining a suitable replacement for Mr. Leever or for other key personnel whose services we may lose would result in transition costs and would divert the attention of other members of our senior management from our existing operations. We do not maintain key person insurance on Mr. Leever.

Our relationship with our employees could deteriorate, and certain key employees could leave the company, which could adversely affect our business and our results of operations.

As a company focused on manufacturing and highly technical customer service, we rely on our ability to attract and retain skilled employees, including our specialized research and development and sales and service personnel, to maintain our efficient production processes, to drive innovation in our product offerings and to maintain our deep customer relationships. As of March 31, 2011, we employed approximately 2,000 full-time employees, approximately 1,000 of whom were members of our research and development and sales and service teams. The departure of a significant number of our highly skilled employees or of one or more employees who hold key regional management positions could have an adverse impact on our operations, including as a result of customers choosing to follow a regional manager to one of our competitors. Further, although we have

historically maintained a good relationship with our employees, our U.S. employees could unionize or any of our employees could engage in a strike, work stoppage or other slowdown that would adversely affect our operations and could result in higher labor costs, which could adversely affect our business and results of operations.

In addition, many of our full-time employees are employed outside the United States. In certain jurisdictions where we operate, labor and employment laws are relatively stringent and, in many cases, grant significant job protection to certain employees, including rights on termination of employment. In addition, in certain countries where we operate, our employees are members of unions or are represented by a works council as required by law. We are often required to consult and seek the consent or advice of these unions and/or works councils. These laws, coupled with the requirement to consult with the relevant unions or works councils, could adversely affect our flexibility in managing costs and responding to market changes and could limit our ability to access the skilled employees on which our business depends.

Business disruptions could seriously harm our net sales and increase our costs and expenses.

Our worldwide operations could be subject to extraordinary events, including natural disasters, political disruptions, terrorist attacks, acts of war and other business disruptions, which could seriously harm our net sales and increase our costs and expenses. Some areas, including parts of the East Coast and Midwest of the United States, have previously experienced, and may in the future experience, major power shortages and blackouts, significant floods and strong tornadoes and other storms. These blackouts, floods and storms could cause disruptions to our operations or the operations of our suppliers, distributors, resellers or customers. Similar losses and interruptions could also be caused by earthquakes, telecommunications failures, water shortages, tsunamis, typhoons, fires, extreme weather conditions, medical epidemics and other natural or manmade disasters for which we are predominantly self-insured.

Our productivity initiatives, including the operational restructuring transactions that we consummated during the recent global economic downturn, may not prove beneficial to us.

We have undertaken and may continue to undertake productivity initiatives, including organizational restructurings, to improve performance and generate cost savings. For example, as a result of the recent downturn in global economic conditions, beginning in 2008, we began executing a series of operational restructuring initiatives that streamlined our organizational structure. These actions have reduced our workforce in our manufacturing, research and development, selling and technical and general and administrative functions. As of March 31, 2011, with the exception of finalizing certain operational restructuring programs in our Industrial Europe operations, we had completed the majority of the operational restructuring actions we have planned. However, we cannot assure you that the assumptions underlying our decisions as to which reductions and eliminations to make as part of these operational restructuring initiatives will prove to be correct and, accordingly, we may determine that we have reduced or eliminated resources that are necessary to, or desirable for, our business. Any reduction or elimination of resources made in error could adversely affect our ability to operate or grow our business and may negatively impact our results of operations.

We are subject to litigation that could have an adverse effect upon our business, financial condition or results of operations.

We are a defendant in numerous lawsuits that result from, and are incidental to, the conduct of our business. These suits concern issues including product liability, contract disputes, labor-related matters, patent infringement, environmental proceedings, property damage and personal injury matters. For example, we are currently a defendant in a patent infringement claim, which has been vigorously opposed by us, relating to technology that is important to us, although we do not expect this claim to have a material adverse effect on our business, financial conditions, results of operations or reputation. The ultimate resolution of such claims, proceedings, and lawsuits is inherently unpredictable and, as a result, our estimates of liability, if any, are subject to change and actual results may materially differ from our estimates. If there is an unfavorable resolution of a

matter, our reputation may be harmed and there could be a material adverse effect on our business, financial condition or results of operations. Moreover, we cannot assure you that we will have any or adequate insurance coverage to protect us from any adverse resolution.

We may be liable for damages based on product liability claims brought against our customers in our end use markets, and any successful claim for damages could have a material adverse effect on our financial condition or results of operations.

Many of our products provide critical performance attributes to our customers’ products that are sold to consumers who could potentially bring product liability suits related to such products. Our sale of these products therefore involves the risk of product liability claims. If a person were to bring a product liability suit against one of our customers, this customer may attempt to seek contribution from us. A person may also bring a product liability claim directly against us. A successful product liability claim or series of claims against us in excess of our insurance coverage for payments, for which we are not otherwise indemnified, could have a material adverse effect on our financial condition or results of operations. While we endeavor to protect ourselves from such claims and exposures in our contractual negotiations, we cannot assure you that our efforts in this regard will ultimately protect us from any such claims.

Risks Related to this Offering and Ownership of Our Common Stock

After this offering, Court Square and Weston Presidio will maintain substantial control over us, which will limit your ability to influence corporate matters and may result in actions that you do not believe are in our interests or your interests.

Following the completion of this offering, Court Square will own % and Weston Presidio will own % of our common stock, or % and % of our common stock, respectively, if the underwriters exercise their over-allotment option in full. As our largest stockholder, Court Square will exercise significant influence over all matters requiring stockholder approval, and Court Square and Weston Presidio collectively will control all matters requiring stockholder approval, including the election of directors, amendment of our certificate of incorporation and approval of significant corporate transactions. In addition, pursuant to the amended and restated securityholders’ agreement (the “Securityholders’ Agreement”) we will enter into with Court Square, Weston Presidio, Daniel H. Leever and our other historical management investors in connection with this offering, until Court Square and Weston Presidio cease to own at least 7.5% of our outstanding common stock, each of Court Square and Weston Presidio will have the right to designate individuals for nomination to our Board. Pursuant to the Securityholders’ Agreement, the other securityholders party thereto are required to vote for the election of such designated nominees. The number of individuals each of Court Square and Weston Presidio is entitled to designate for nomination by our Board is dependent on the amount of our common stock then owned by such entity.

Further, the Securityholders’ Agreement will provide that, so long as Court Square owns at least 25% of our issued and outstanding common shares, certain actions by us or our subsidiaries will require the approval of at least a majority of the Court Square director designees (in addition to any other vote by our Board or stockholders). The actions requiring Court Square approval include certain change of control transactions, the acquisition or sale of any assets or operations with a value in excess of $50.0 million, any appointment or dismissal of our chief executive officer, any changes in the size of the Board and any amendment to our certificate of incorporation or by-laws. Subject to certain exceptions, so long as Court Square owns at least % of our issued and outstanding common shares, a quorum sufficient for action by our Board must include a majority of the Court Square director designees. For more information on the rights of Court Square and Weston Presidio under the Securityholders’ Agreement, see “Certain Relationships and Related Party Transactions—Relationship with Court Square and Weston Presidio—Securityholders’ Agreement”.

The contractual rights and significant ownership of Court Square and Weston Presidio may delay, deter or prevent acts that may be favored by our other stockholders, including a change of control of us. The interests of Court Square and Weston Presidio may not always coincide with our interests or those of our other stockholders, and Court Square and Weston Presidio may seek to cause us to take courses of action that, in their judgment, could enhance their investment in us, but which might involve risks to our other stockholders or adversely affect us or our other stockholders, including investors in this offering.

Further, Court Square and Weston Presidio are in the business of making investments in companies and may from time to time acquire and hold interests in businesses that compete directly or indirectly with us. Court Square and Weston Presidio may also pursue acquisition opportunities that are complementary to our business and, as a result, those acquisition opportunities may not be available to us.

So long as Court Square and Weston Presidio or their affiliates or associates have these contractual rights or continue to own a significant amount of our common stock, even if such amount is, in the aggregate, less than 50%, they will have significant influence over our business.

There is no existing market for our common stock, and we do not know if one will develop to provide you with adequate liquidity.

Prior to this offering, there has been no public market for shares of our common stock. We cannot predict the extent to which investor interest in our company will lead to the development of a trading market on the New York Stock Exchange (the “NYSE”) or otherwise, or how liquid that market might become. If an active market does not develop, you may have difficulty selling any shares of our common stock that you purchase in this offering. The initial public offering price for the shares of our common stock will be determined by negotiations between us and the representatives of the underwriters, and may not be indicative of prices that will prevail in the open market following this offering. If our common stock price decreases after this offering, you could lose a significant part or all of your investment.

Our stock price may fluctuate significantly following this offering.

The market price of our common stock may be influenced by many factors, some of which are beyond our control, including those described under “—Risks Related to Our Business and Industry” and the following:

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investors’ perceptions of our prospects;

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strategic actions by us or our competitors;

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changes or trends in our industry;

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announcements by us or our competitors of significant contracts, acquisitions, joint ventures or capital commitments;

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additions or departures of key personnel;

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the failure of securities analysts to cover our common stock after this offering or changes in financial estimates by analysts;

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variations in our quarterly results of operations;

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future sales of our common stock or other securities, including sales by Court Square and Weston Presidio; and

•

investor perceptions of the investment opportunity associated with our common stock relative to other investment alternatives.

As a result of these factors, investors in our common stock may not be able to resell their shares at or above the initial offering price. These broad market and industry factors may materially reduce the market price of our common stock, regardless of our operating performance. In addition, price volatility may be greater if the trading volume of our common stock is low.

We will face new challenges, increased costs and administrative responsibilities as an independent public company.

As a public company with listed equity securities, we will need to comply with certain laws, regulations and requirements, including certain provisions of the Sarbanes-Oxley Act of 2002, certain regulations of the Securities and Exchange Commission (the “SEC”) and certain of the NYSE requirements applicable to public companies. Complying with these statutes, regulations and requirements will occupy a significant amount of the time of our Board and management and will significantly increase our costs and expenses.

We will need to:

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institute a more comprehensive compliance framework;

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update, evaluate and maintain a system of internal controls over financial reporting in compliance with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the related rules and regulations of the SEC;

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prepare and distribute periodic public reports in compliance with our obligations under the federal securities laws;

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revise our existing internal policies, such as those relating to disclosure controls and procedures and insider trading;

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involve and retain to a greater degree outside counsel and accountants in the above activities; and

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enhance our investor relations function.

In addition, we also expect that being a public company subject to these rules and regulations will make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors could also make it more difficult for us to attract and retain qualified executive officers and members of our Board, particularly to serve on our audit committee.

Failure to establish and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 could have a material adverse effect on our business and stock price.

As a public company, we will be required to document and test our internal control procedures in order to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, which will require, beginning with our Annual Report on Form 10-K for the year ending December 31, 2012, annual management assessments of the effectiveness of our internal control over financial reporting and a report by our independent registered public accounting firm that addresses the effectiveness of our internal control over financial reporting. During the course of our testing, we may identify deficiencies that we may not be able to remediate in time to meet our deadline for compliance with Section 404.

Testing and maintaining internal control can divert our management’s attention from other matters that are important to the operation of our business. We also expect the regulations to increase our legal and financial compliance costs, make it more difficult to attract and retain qualified executive officers and members of our Board, particularly to serve on our audit committee, and make some activities more difficult, time consuming and costly. We may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404 and our independent registered public accounting firm may not be able or willing to issue an unqualified report on the effectiveness of our internal control over financial reporting. If we conclude that our internal control over financial reporting is not effective, we cannot be certain as to the timing of completion of our evaluation, testing and remediation actions or their effect on our operations because there is presently no precedent available by which to measure compliance adequacy.

In connection with the audit of the financial statements of MacDermid, Incorporated for the year ended December 31, 2008, our independent registered public accountants identified three material weaknesses in our

system of internal control over financial reporting. A material weakness is a deficiency, or combination of deficiencies in internal control over financial reporting, that results in a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. We took remedial measures related to these matters and we believe that the material weaknesses have been resolved. Since the 2008 fiscal year, we are not aware of any material weaknesses in our internal control over financial reporting.

If additional material weaknesses or any significant deficiencies are identified in the future, our independent auditors are unable to provide us with an unqualified report as required by Section 404 or we are required to restate our financial statements, we may fail to meet our public reporting obligations and investors could lose confidence in our reported financial information, which could have a negative effect on the trading price of our stock.

We will be a “controlled company” within the meaning of the NYSE rules and, as a result, will qualify for, and intend to rely on, exemptions from certain corporate governance requirements.

Upon completion of this offering, Court Square and Weston Presidio collectively will control a majority of our voting common stock. As a result, we will be a “controlled company” within the meaning of NYSE corporate governance standards. Under NYSE rules, a company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled company” and may elect not to comply with certain NYSE corporate governance requirements, including:

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the requirement that a majority of our Board consists of independent directors;

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the requirement that we have a nominating and corporate governance committee that is composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities;

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the requirement that we have a compensation committee that is composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities; and

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the requirement for an annual performance evaluation of the nominating and corporate governance committee and compensation committee.

Following this offering, we intend to utilize the “controlled company” exemptions from the NYSE corporate governance requirements. As a result, we will not have a majority of independent directors nor will our nominating and corporate governance committee and compensation committee consist entirely of independent directors. Further, we will not be required to have an annual performance evaluation of the nominating and corporate governance committee and compensation committee. Accordingly, you will not have the same protections afforded to stockholders of companies that are subject to all of the NYSE’s corporate governance requirements.

You will incur immediate and substantial dilution as a result of this offering.

The initial public offering price per share of our common stock is substantially higher than the net tangible book value per share of our outstanding common stock immediately after this offering. As a result, you will pay a price per share that substantially exceeds the tangible book value per share, which is determined by dividing the total tangible assets of MacDermid, Incorporated and its consolidated subsidiaries less the total liabilities of MacDermid, Incorporated and its consolidated subsidiaries by the number of shares of our common stock outstanding. Based on the issuance and sale of million shares of common stock by us at an assumed initial public offering price of $ per share (the midpoint of the range set forth on the cover of this prospectus), you will incur immediate dilution of approximately $ in the net tangible book value per share if you purchase shares in this offering. See “Dilution”.

Future sales, or the perception of future sales, of our common stock may depress the price of our common stock.

The market price of our common stock could decline significantly as a result of sales of a large number of shares of our common stock in the market after this offering, including shares that might be offered for sale by Court Square and Weston Presidio. These sales, or the perception that these sales might occur, could depress the market price of our common stock. These sales, or the possibility that these sales may occur, also might make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate.

Upon completion of this offering, we will have shares of common stock outstanding. The shares of common stock offered in this offering will be freely tradable without restriction under the Securities Act of 1933, as amended (the “Securities Act”), except for any shares of common stock that may be held or acquired by our directors, executive officers or other affiliates, the sale of which will be restricted under the Securities Act.

After this offering, Court Square will have the right, subject to certain conditions, to require us to file registration statements registering additional sales of shares of common stock and Court Square, Weston Presidio and the other securityholders party to the Securityholders’ Agreement will have the right to require us to include sales of shares of common stock in registration statements that we may file for ourselves or Court Square. In order to exercise these registration rights, the holder must be permitted to sell shares of its common stock under applicable lock-up restrictions described below. Subject to compliance with applicable lock-up restrictions and restrictions under the Securityholders’ Agreement (both of which may be waived), shares of common stock sold under these registration statements can be freely sold in the public market. In the event such registration rights are exercised and a large number of shares of common stock are sold in the public market, such sales could reduce the trading price of our common stock. These sales also could impede our ability to raise future capital. See “Shares Eligible for Future Sale—Registration Rights”.

In connection with this offering, Court Square, Weston Presidio, Daniel H. Leever and certain of our other officers and directors have each agreed to lock-up restrictions, meaning that they and their permitted transferees will not be permitted to sell any shares of our common stock for 180 days after the date of this prospectus, subject to certain exceptions, without the prior consent of . Although we have been advised that there is no present intention to do so, may, in its sole discretion, release all or any portion of the shares of our common stock from the restrictions in any of the lock-up agreements described above. See “Underwriting”.

Also in the future, we may issue shares of our common stock in connection with investments or acquisitions. The amount of shares of our common stock issued in connection with an investment or acquisition could constitute a material portion of our then outstanding shares of our common stock.

Anti-takeover provisions in our charter documents could discourage, delay or prevent a change of control of our company and may result in an entrenchment of management and diminish the value of our common stock.

Several provisions of our certificate of incorporation and by-laws could make it difficult for our stockholders to change the composition of our Board, preventing them from changing the composition of management. In addition, the same provisions may discourage, delay or prevent a merger or acquisition that our stockholders may consider favorable. See “Description of Capital Stock”.

These provisions include:

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authorizing our Board to issue “blank check” preferred stock without stockholder approval;

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prohibiting cumulative voting in the election of directors;

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limiting the persons who may call special meetings of stockholders;

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prohibiting stockholders from acting by written consent after Court Square and Weston Presidio cease to own more than 50% of the total voting power of our shares; and

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establishing advance notice requirements for nominations for election to our Board or for proposing matters that can be acted on by stockholders at stockholder meetings.

These anti-takeover provisions could impede the ability of our common stockholders to benefit from a change of control and, as a result, could materially adversely affect the market price of our common stock and your ability to realize any potential change of control premium.

We cannot assure you that we will declare dividends or have the available cash to make dividend payments.

We intend to pay quarterly cash dividends in an amount equal to $ per share following the completion of this offering. Whether we will do so, however, and the timing and amount of those dividends, will be subject to approval and declaration by our Board and will depend upon on a variety of factors, including the financial results, cash requirements and financial condition of the company, our ability to pay dividends under the credit agreement governing the Credit Facilities, the indenture governing the Senior Subordinated Notes and any other applicable contracts, and other factors deemed relevant by our Board. Any dividends declared and paid will not be cumulative.

Because MacDermid Group, Inc. is a holding company with no material assets (other than, following completion of the Corporate Reorganization, the equity interests of MacDermid, Incorporated), its cash flow and ability to pay dividends will be dependent upon the financial results and cash flows of MacDermid, Incorporated and its subsidiaries and the distribution or other payment of cash to MacDermid Group, Inc. in the form of dividends or otherwise. MacDermid, Incorporated is a separate and distinct legal entity from us and has no obligation to make any funds available to us.

If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.

The trading market for our common stock will depend in part on the research and reports that securities or industry analysts publish about us or our business. If no securities or industry analysts cover our company, the trading price for our common stock would be negatively impacted. If one or more of the analysts who covers us downgrades our common stock or publishes inaccurate or unfavorable research about our business, our stock price would likely decline. If one or more of these analysts ceases coverage of us or fails to publish reports on us regularly, demand for our common stock could decrease, which could cause our stock price and trading volume to decline.

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This prospectus includes forward-looking statements within the meaning of the federal securities laws. These statements relate to, among other items, net sales, earnings, revenue, gross profit, profitability, financial conditions, results of operations, cash flows, capital expenditures and other financial matters. These statements also relate to our business strategy, goals and expectations concerning our market position and future operations. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are often characterized by the use of words such as “believe”, “expect”, “anticipate”, “estimate”, “intend”, “plan”, “target”, “likely”, “may”, “will”, “would”, “could”, “predict”, “project”, and similar expressions or phrases, or the negative of those expressions or phrases.

Although we believe that we have a reasonable basis for the assumptions underlying the forward-looking statements contained in this prospectus, we caution you that our assumptions could be incorrect and the forward-looking statements based on these assumptions could be inaccurate. Further, these forward-looking statements are based on our projections of the future and involve known and unknown risks and uncertainties and other factors that may cause our actual results of operations, level of activity, performance, achievements or industry results to differ materially from our historical results or from any future results, performance or achievements suggested or implied by the forward-looking statements in this prospectus. The sections in this prospectus entitled “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business” discuss some of the factors that could contribute to these differences, including risks related to:

•

conditions in the global economy;

•

the variability of our operating results between periods and the resulting difficulty in forecasting future results;

•

the need for increased spending on capital expenditures to meet customer demand and pursue growth opportunities;

•

our ability to compete successfully within our industry;

•

our substantial international operations;

•

fluctuations in foreign currency exchange rates;

•

changes in our customers’ products and processes;

•

the fact that we do not enter into long-term contracts with certain of our customers and the potential loss of those customers;

•

decreases in the average selling prices of products in our industry;

•

increases in the cost, or reductions in the supply, of the specialty and commodity chemicals used in our manufacturing processes;

•

costs related to compliance with health, safety and environmental laws and regulations, including global climate change legislation;

•

our ability to maintain and enhance our technological capabilities and to respond effectively to technological changes in our industry;

•

our substantial level of indebtedness and the effect of restrictions on our operations set forth in the documents that govern such indebtedness;

•

our compliance with certain financial maintenance covenants in our revolving credit facility and the effect on our liquidity of any failure to comply with such covenants;

•

our ability to protect our intellectual property, on which our business is substantially dependent, and our success in avoiding infringing the intellectual property rights of others;

•

acquisitions of other businesses and our ability to integrate acquired operations into our operations;

•

the inherently hazardous nature of chemical manufacturing and the offshore oil production and drilling industry;

•

the costs of complying with government regulations and obtaining regulatory approval of our products;

•

risks related to the evaluation of our intangible asset values and the possibility of write-downs;

•

the loss of the services of key personnel;

•

our relationship with our employees;

•

disruptions in our operations or the operations of our suppliers, distributors, resellers or customers as a result of extraordinary events;

•

our ability to realize a benefit from our productivity initiatives; and

•

our role as a defendant in litigation that results from our business, including costs related to any damages we may be required to pay as a result of product liability claims brought against our customers.

Because these and other unknown or unpredictable factors could adversely affect our results, our anticipated results or developments may not be realized or, even if substantially realized, they may not have the expected consequences to, or effects on, our business. Given these uncertainties, prospective investors are cautioned not to place undue reliance on any forward-looking statements in this prospectus. Forward-looking statements speak only as of the date they are made, and, except as required by law, we undertake no obligation to update or revise them publicly in light of new information or future events. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

USE OF PROCEEDS

We estimate that the net proceeds from the sale of shares of our common stock in this offering will be approximately $ million, assuming an initial public offering price of $ per share (the midpoint of the range set forth on the cover of this prospectus), after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. Our net proceeds will increase by approximately $ million if the underwriters’ over-allotment option is exercised in full. Each $1.00 increase (decrease) in the assumed initial public offering price per share would increase (decrease) the net proceeds to us from this offering by $ million, assuming that the number of shares offered by us, as set forth on the cover of this prospectus, remains the same and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

We expect to use the net proceeds from this offering to prepay $ million of indebtedness under the Term Loan Facilities, to make payments to Court Square and Weston Presidio in connection with the termination of the advisory agreements and the consummation of this offering as described under “Certain Relationships and Related Party Transactions—Relationship with Court Square and Weston Presidio—Advisory Agreement” in the amount of $3.4 million and $0.8 million, respectively, and to retain the remainder to use for general corporate purposes. We expect that any increase (decrease) in the net proceeds to us from this offering resulting from an increase (decrease) in the assumed initial public offering price per share will be allocated 25% to the amounts used to prepay indebtedness under the Term Loan Facilities and 75% to the amounts to be retained for general corporate purposes.

After giving effect to the prepayment of $ million of indebtedness under the Term Loan Facilities, we will have $ million of senior secured indebtedness outstanding under the Term Loan Facilities and $ million of availability under the Revolving Credit Facility.

As of March 31, 2011, the weighted average interest rate for the three months ended March 31, 2011, applicable to the Tranche B Facility and Tranche C Facility, both of which mature on April 12, 2014, was 2.26% and 3.09%, respectively.

None of Court Square, Weston Presidio or our other affiliates holds indebtedness under the Credit Facilities. Accordingly, other than as a result of the payments to Court Square and Weston Presidio in connection with the termination of the advisory agreements, as described above, none of Court Square, Weston Presidio or our other affiliates will receive any of the net proceeds from this offering.

Affiliates of Credit Suisse Securities (USA) LLC are lenders under our senior secured credit facilities, which include our Term Loan Facilities. Such affiliates will receive a portion of the proceeds from this offering upon any repayment of a portion of the borrowings outstanding under our Term Loan Facilities. See “Underwriting”.

DIVIDEND POLICY

We intend to pay quarterly cash dividends in an amount equal to $ per share following completion of this offering. Whether we will do so, however, and the timing and amount of those dividends, will be subject to approval and declaration by our Board and will depend on a variety of factors, including the financial results, cash requirements and financial condition of the company, our ability to pay dividends under the credit agreement governing the Credit Facilities, the indenture governing the Senior Subordinated Notes and any other applicable contracts, and other factors deemed relevant by our Board.

Since MacDermid Group, Inc. is a holding company, its cash flow and ability to pay dividends are dependent upon the financial results and cash flows of MacDermid, Incorporated and its subsidiaries and the distribution or other payment of cash to MacDermid Group, Inc. in the form of dividends or otherwise.

CAPITALIZATION

The following table sets forth our cash and cash equivalents and capitalization as of March 31, 2011, on:

•

an actual basis, to reflect the cash and cash equivalents and capitalization of MacDermid, Incorporated and its consolidated subsidiaries as of March 31, 2011; and

•

an as adjusted basis, to reflect (1) the sale by us of shares of our common stock in this offering at an assumed initial offering price of $ per share (the midpoint of the range set forth on the cover of this prospectus) after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, (2) the application of the net proceeds therefrom as described in “Use of Proceeds” and (3) the consummation of the Corporate Reorganization, which will be a condition to the consummation of this offering.

You should read this table in conjunction with “Use of Proceeds”, “Selected Consolidated Financial Information”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the audited and unaudited financial statements and related notes included elsewhere in this prospectus.


	As of March 31, 2011
	Actual			As Adjusted (1)
(in thousands, except share and per share data)	(unaudited)
Cash and cash equivalents (1)	$	88,454		$

Debt:
Credit Facilities (2)	$	402,267		$
Senior Subordinated Notes		350,000
Other bank facilities (3)		15,525

Total debt (1)		767,792

Stockholders’ equity:
Cumulative preferred shares, 316,000 shares authorized and issued; 315,247 shares outstanding including cumulative dividends of $133,476 (Actual)		449,476
Common shares, $1.00 par value per shares, 50,000,000 shares authorized, 49,660,659 shares issued and outstanding (Actual)		50,000
Common Stock, $0.01 par value per share, shares authorized, shares issued and outstanding (As adjusted)
Additional paid-in capital		1,527
Accumulated deficit		(250,485	)
Accumulated other comprehensive income		20,092
Common and preferred shares in treasury, 753 preferred and 339,341 common (Actual)		(1,082	)

Total stockholders’ equity (1)		269,528

Total capitalization	$	1,037,320		$

(1)

Assumes the net proceeds from this offering to us are $ million and reflects the use of the net proceeds to prepay $ million of indebtedness under the Term Loan Facilities and to pay $3.4 million to Court Square and $0.8 million to Weston Presidio in connection with the termination of the advisory agreements and the consummation of this offering. A $1.00 increase (decrease) in the assumed initial public offering price of $ per share (the midpoint of the range set forth on the cover of this prospectus) would increase (decrease) the net proceeds to us by $ million, assuming the number of shares offered by us, as set forth on the cover of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated offering expenses payable by us, and would increase (decrease) our total debt by $ million and decrease (increase) our total stockholders’ equity by $ million. See “Use of Proceeds”.

(2)	As of March 31, 2011, $46.0 million was available to MacDermid, Incorporated under the Revolving Credit Facility.

(3)	Includes $13.6 million of Japanese Yen denominated debt, $1.8 million of overdraft lines and $0.1 million of capital lease obligations.

THE CORPORATE REORGANIZATION

MacDermid Group, Inc. was incorporated in Delaware on June 17, 2011, in anticipation of this offering. MacDermid Group, Inc. is a direct, wholly owned subsidiary of MacDermid Holdings, LLC.

In anticipation of this offering, MacDermid Holdings, LLC and its subsidiaries will engage in a reorganization (the “Corporate Reorganization”), pursuant to which (1) MacDermid Holdings, LLC and the MacDermid, Incorporated Profit Sharing and Employee Savings Plan (the “Savings Plan”), who comprise the existing stockholders of MacDermid, Incorporated, will exchange the capital stock of MacDermid, Incorporated for the common stock of MacDermid Group, Inc. and (2) MacDermid Holdings, LLC will liquidate and distribute the shares of MacDermid Group, Inc. then held by it to the holders of its membership interests. The number of shares of the common stock of MacDermid Group, Inc. to be received by the existing holders of the membership interests of MacDermid Holdings, LLC will be determined in accordance with the provisions of the limited liability company operating agreement of MacDermid Holdings, LLC.

The effectiveness of the Corporate Reorganization is a condition to the consummation of this offering.

Following the completion of the Corporate Reorganization, MacDermid Group, Inc. will own 100% of MacDermid, Incorporated. The MacDermid business will continue to be conducted through MacDermid, Incorporated and its domestic and foreign subsidiaries.

The diagram below illustrates our corporate structure immediately following consummation of this offering (and assumes a public offering price of $ (the midpoint of the range set forth on the cover of this prospectus)):

LOGO

Please refer to “Principal Stockholders” for additional information on the ownership of MacDermid Group, Inc. following the completion of this offering.

DILUTION

If you invest in our common shares, your interest will be diluted to the extent of the difference between the initial public offering price and the adjusted net tangible book value per share of the common stock of MacDermid Group, Inc. immediately after this offering. Net tangible book value per share is determined by dividing the total tangible assets of MacDermid Group, Inc. less its total liabilities by the number of shares of its common stock outstanding. The historical as adjusted net tangible book value, as of March 31, 2011, giving effect to the Corporate Reorganization and before giving effect to this offering, was $ , or $ per share.

After giving effect to (1) the sale of the shares of common stock of MacDermid Group, Inc. at an assumed initial public offering price of $ per share (the midpoint of the range set forth on the cover of this prospectus) and (2) the application of the estimated net proceeds from this offering as described in “Use of Proceeds”, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by MacDermid Group, Inc., the as adjusted net tangible book value as of March 31, 2011, would have been $ , or $ per share. This estimate represents an immediate increase in net tangible book value of $ per share of common stock to Court Square, Weston Presidio and the other historical equity investors in MacDermid, Incorporated and the Savings Plan (collectively, the “Historical Equity Investors”) and an immediate dilution in net tangible book value of $ per share to investors purchasing shares of common stock of MacDermid Group, Inc. in this offering.

The following table illustrates this dilution on a per share basis:


Assumed initial public offering price per share		$
Historical as adjusted net tangible book value per share as of March 31, 2011 before giving effect to this offering	$
Increase in historical as adjusted net tangible book value per share attributable to this offering	$
As adjusted net tangible book value per share after giving effect to this offering		$
Dilution per share to new investors		$

A $1.00 increase (decrease) in the assumed initial public offering price per share would increase (decrease) the as adjusted net tangible book value after this offering by approximately $ , and the as adjusted net tangible book value per share after this offering by $ per share. It would also increase (decrease) the dilution per share to investors in this offering by $ per share, assuming the number of shares offered by MacDermid Group, Inc. under this prospectus remains the same and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. The information discussed above is illustrative only and will adjust based on the actual initial public offering price and other terms of this offering determined at pricing.

The following table sets forth, on the same as adjusted basis as of March 31, 2011, (1) the number of shares of common stock of MacDermid Group, Inc. purchased from MacDermid Group, Inc., (2) the average price per share paid by the Historical Equity Investors before this offering and (3) the average price paid by investors participating in this offering, before deducting the estimated underwriting discounts and commissions and estimated offering expenses.


	Shares Purchased		Total Consideration
	Number	Percent of Outstanding Shares (after this offering and consummation of the Corporate Reorganization)	Amount	Percent	Average Price per Share

Historical Equity Investors		%	$	%	$

Investors in this offering		%	$	%	$

Total		%	$	%	$

If the underwriters’ over-allotment option is exercised in full, (1) the as adjusted net tangible book value per share of common stock would be approximately $ and (2) dilution to new investors in as adjusted net tangible book value per share of common stock would be reduced to $ , or $ per share.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

The following selected consolidated financial data should be read together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the audited and unaudited consolidated financial statements and related notes included elsewhere in this prospectus.

We prepare our financial statements in accordance with U.S. GAAP. Our results for any historical period are not necessarily indicative of our results for any future period. You should read this selected financial data in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes included elsewhere in this prospectus.

The following table sets forth the selected balance sheet data of MacDermid Group, Inc. as of June 17, 2011, which have been derived from the audited balance sheet included elsewhere in this prospectus.


	As of June 17, 2011
MacDermid Group, Inc. Balance Sheet Data:
Cash and cash equivalents	$	100
Total assets		100
Total equity		100

In the table below, the selected consolidated statements of operations data for the years ended December 31, 2010, 2009 and 2008 and the selected consolidated balance sheet data as of December 31, 2010 and 2009 represent those of MacDermid, Incorporated as the successor entity (the “Successor”) following the acquisition of MacDermid, Incorporated by a group led by our chairman and chief executive officer, Daniel H. Leever, Court Square and Weston Presidio (the “Acquisition”) and have been derived from the audited financial statements of MacDermid, Incorporated included elsewhere in this prospectus. The Successor selected consolidated statements of operations data for the period from April 13, 2007 through December 31, 2007 have been derived from the audited financial statements of MacDermid, Incorporated that are not included in this prospectus. The selected consolidated statements of operations data for the period from January 1, 2007 through April 12, 2007 and the year ended December 31, 2006 represent those of MacDermid, Incorporated as the predecessor entity to the Acquisition (the “Predecessor”) and have been derived from the audited financial statements of MacDermid, Incorporated that are not included in this prospectus.

The Successor selected consolidated balance sheet data as of December 31, 2008 and 2007, and the Predecessor consolidated balance sheet data as of December 31, 2006 have been derived from the audited financial statements of MacDermid, Incorporated that are not included in this prospectus. The selected consolidated historical financial data for the three months ended March 31, 2011 and 2010 and as of March 31, 2011 and 2010 have been derived from the unaudited condensed consolidated financial statements of MacDermid, Incorporated, which are included elsewhere in this prospectus. The unaudited financial statements have been prepared on the same basis as the audited financial statements and, in the opinion of our management, include all adjustments, including normal recurring adjustments, necessary for a fair presentation in all material respects of the information set forth therein. Results of operations for the interim periods are not necessarily indicative of the results that might be expected for any other interim period or for an entire year.


	Successor									Combined (1)			Successor			Predecessor			Predecessor			Successor			Successor
(amounts in thousands, except per share data)													Period from April 13, 2007 through December 31, 2007			Period from January 1, 2007 through April 12, 2007			Year ended December 31, 2006			Three months ended March 31,
(amounts in thousands, except per share data)	Year ended December 31,																					Three months ended March 31,
	2010			2009			2008			2007												2011			2010
										(unaudited)												(unaudited)
Statement of Operations Data:
Net sales	$	694,333		$	594,153		$	744,208		$	726,133		$	532,439		$	193,694		$	754,885		$	178,521		$	168,488
Cost of sales		371,223			333,963			443,939			422,987			307,521			115,466			435,960			94,980			89,667

Gross profit		323,110			260,190			300,269			303,146			224,918			78,228			318,925			83,541			78,821

Operating expenses:
Selling, technical and administrative		179,786			156,508			188,332			200,150			133,448			66,702			198,208			45,629			44,377
Research and development		21,005			20,103			25,093			25,932			18,329			7,603			26,332			5,359			5,048
Amortization		29,694			29,868			31,179			23,703			21,971			1,732			5,655			7,362			7,499
Restructuring (2)		6,234			4,228			12,931			582			206			376			2,322			(181	)		672
Impairment charges (3)		—			68,692			16,303			—			—			—			—			—			—

Total operating expenses		236,719			279,399			273,838			250,367			173,954			76,413			232,517			58,169			57,596

Operating profit (loss)		86,391			(19,209	)		26,431			52,779			50,964			1,815			86,408			25,372			21,225
Other income (expense):
Interest income		696			458			1,870			2,309			987			1,322			3,315			108			155
Interest expense (4)		(56,196	)		(60,740	)		(75,060	)		(71,162	)		(62,823	)		(8,339	)		(28,776	)		(14,088	)		(15,025	)
Miscellaneous income (expense) (5)		15,106			(5,020	)		9,655			(21,661	)		(21,507	)		(154	)		(756	)		(16,172	)		9,521


Income (loss) from continuing operations before income taxes, non-controlling interest and accumulated payment-in-kind dividend on cumulative preferred shares		45,997			(84,511	)		(37,104	)		(37,735	)		(32,379	)		(5,356	)		60,191			(4,780	)		15,876
Income tax (expense) benefit		(21,723	)		6,427			(1,059	)		14,786			12,343			2,443			(15,791	)		(1,145	)		(8,417	)

Income (loss) from continuing operations		24,274			(78,084	)		(38,163	)		(22,949	)		(20,036	)		(2,913	)		44,400			(5,925	)		7,459
(Loss) income from discontinued operations, net of tax (6)		—			(4,448	)		2,316			5,715			4,078			1,637			7,452			—			—

Income (loss) from continuing operations		24,274			(82,532	)		(35,847	)		(17,234	)		(15,958	)		(1,276	)		51,852			(5,925	)		7,459
Extraordinary gain, net of income taxes (7)		—			—			—			910			—			910
Less net income attributable to the non-controlling interest		(343	)		(295	)		(207	)		(120	)		(88	)		(32	)		—			(88	)		(80	)

Net income (loss) attributable to MacDermid, Incorporated	$	23,931		$	(82,827	)	$	(36,054	)	$	(16,444	)	$	(16,046	)	$	(398	)	$	51,852		$	(6,013	)	$	7,379


	Successor						Combined (1)		Successor	Predecessor	Predecessor		Successor		Successor
(amounts in thousands, except per share data)									Period from April 13, 2007 through December 31, 2007	Period from January 1, 2007 through April 12, 2007	Year ended December 31, 2006		Three months ended March 31,
(amounts in thousands, except per share data)	Year ended December 31,												Three months ended March 31,
	2010		2009		2008		2007						2011		2010
							(unaudited)						(unaudited)
Statement of Operations Data:
Net (loss) earnings attributable to MacDermid, Incorporated per share

Basic:
(Loss) income from continuing operations	$		$		$				$				$		$
(Loss) income from discontinued operations (6)	$		$		$				$				$		$
Net loss	$		$		$				$				$		$

Diluted:
(Loss) income from continuing operations	$		$		$				$				$		$
(Loss) income from discontinued operations (6)	$		$		$				$				$		$
Net loss	$		$		$				$				$		$

Weighted average shares Outstanding
Basic
Diluted

Balance Sheet Data (End of Period):
Cash and cash equivalents	$	106,740	$	85,496	$	93,149	$	69,234			$	124,476	$	88,454	$	91,063
Total assets	$	1,314,789	$	1,307,206	$	1,420,959	$	1,613,691			$	922,256	$	1,311,010	$	1,288,586
Total debt and capital lease obligations	$	784,612	$	821,023	$	870,113	$	901,154			$	302,182	$	767,792	$	791,757
Total equity	$	259,209	$	216,304	$	264,186	$	371,104			$	414,671	$	269,338	$	208,456

(1)

Our combined results for the year ended December 31, 2007 represent the addition of the results from the Predecessor period from January 1, 2007 through April 12, 2007 and the results from the Successor period from April 13, 2007 through December 31, 2007. This combination does not comply with U.S. GAAP or with the rules for pro forma presentation but is presented because we believe it provides the most meaningful comparison of our results to other periods.

(2)

(3)

In 2009, we recorded (i) impairment charges of $41.2 million related to a write down of our goodwill balance to its estimated fair value as determined in accordance with ASC 350, (ii) an impairment charge of $26.1 million related to a write down of an indefinite-lived purchased intangible asset to its estimated fair value as determined in accordance with ASC 350, (iii) an impairment charge of $0.2 million related to a write down of a finite-lived purchased intangible asset to its estimated fair value as determined in accordance with ASC 350 and (iv) an impairment charge of $1.2 million related to a write down of equipment to its estimated fair value as determined in accordance with ASC 360 “Property, Plant and Equipment”. In 2008, we recorded an impairment charge of $16.3 million related to a write down of our goodwill balance to its estimated fair value as determined in accordance with ASC 350. For a detailed description of these impairment charges see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 4 to our audited financial statements included in this prospectus.

(4)

Primarily reflects interest expense associated with our long-term debt for periods after the Acquisition.

(5)

Represents mark-to-market (gain) loss on foreign denominated debt as a result of changes in foreign exchange rates. For a detailed description of these mark-to-market gains/losses charges, see the discussion of our miscellaneous (expense) income in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 16 to our audited financial statements included in this prospectus.

(6)

Reflects loss (gain) from discontinued operations related to the sale of Offset in 2008 and the sale of our ColorSpan printing business in 2007. All operating results exclude amounts associated with discontinued operations.

(7)

Amount represents negative goodwill associated with an acquisition which occurred in January 2007.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion and analysis of the financial position and results of operations for MacDermid, Incorporated and its consolidated subsidiaries for each of the three years ended December 31, 2010, 2009 and 2008, and the three months ended March 31, 2011 and 2010. You should read the following discussion of our results of operations and financial condition together with “Selected Consolidated Financial Information” and the audited consolidated financial statements and related notes of MacDermid, Incorporated and its consolidated subsidiaries included elsewhere in this prospectus. This discussion contains forward looking statements and involves numerous risks and uncertainties, including, but not limited to, those described under the heading “Risk Factors”. Actual results may differ materially from those contained in any forward-looking statements. In this “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, references to the “company”, “we”, “us” and “our” refer to MacDermid, Incorporated and its consolidated subsidiaries.

Overview

Our Business and its Competitive Strengths

We are a global producer of high technology speciality chemical products and provider of technical services. Our business involves the manufacture of a broad range of specialty chemicals, which we create by blending raw materials, and the incorporation of these chemicals into multi-step technological processes. We refer to our products as “dynamic chemistries” due to their delicate chemical compositions, which are frequently altered during customer use.

We generate revenue through the manufacture and sale of our dynamic chemistries to customers in the electronics, metal and plastic plating, graphic arts, and offshore oil production and drilling industries, and by providing highly technical, post-sale service to our customers to ensure that the chemical composition and function of our dynamic chemistries are maintained as intended. We recognize the revenue from the sale of our products upon shipment to our customers. In the year ended December 31, 2010 and in the three months ended March 31, 2011, we generated net sales of $694.3 million and $178.5 million, respectively. We believe, based on our 2010 net sales, that a majority of our operations hold leading positions in the product markets they serve, including the number one or number two market share positions held by Electronic Solutions and Industrial Solutions in the product markets they serve.

We believe several key differentiating elements of our business have enabled us to focus on high growth opportunities, maintain high margins and a high return on invested capital, and generate stable and strong cash flows. Through our “asset-lite, high-touch” business model, we dedicate extensive resources to research and development and our highly technical, post-sale customer service, while limiting our investments in fixed assets and capital expenditures. Our capital expenditures for the year ended December 31, 2010 and the three months ended March 31, 2011 were $7.5 million and $1.5 million, respectively, accounting for 1.1% and 0.8% of our net sales during the corresponding period, respectively.

We believe our proprietary technology, extensive industry experience and customer service-focused business model are difficult for our competitors to replicate. In addition, we believe the expense to our customers of changing processes or suppliers is relatively high compared to the potential cost savings. As a result, our customers are disincentivized from switching to our competitors’ products. As of December 31, 2010, we served more than 3,500 customers worldwide through our global network of 14 manufacturing sites, 21 technical service facilities, including 8 research and development centers, in 24 countries. Our international reach, coupled with our local presence, enables us to meet the global and local needs of our customers. We leverage our close customer relationships to execute our growth strategies by working with our customers to identify opportunities for new products, which we develop by drawing upon our significant intellectual property portfolio and technical expertise.

The products we create, which are manufactured from over 1,000 raw materials, are used by our customers in numerous and diverse end markets. The diversity of our materials and suppliers, our end markets, our products, our product applications, our customer base and the range of geographic regions in which we operate helps to mitigate the effects of any adverse event affecting a particular raw material or a specific end market or region. In many of the regions in which we operate, we are able to increase our prices in response to increases in our costs. For example, during the second half of 2010, we experienced increases in the prices of certain raw materials used in our products, most notably the prices of gold, silver and palladium. To partially offset these increases in raw material costs, we implemented product surcharges and selective price increases. Although our cost of sales increased by 11.2% to $371.2 million in the year ended December 31, 2010 as compared to $334.0 million in the same period in 2009, our gross profit from these sales increased by 24.2% from 2009 to 2010. The increase in our cost of sales was due to an increase in our costs of raw materials, an increase in variable compensation due to increased sales and the elimination of temporary cost reductions made in 2009 due to the economic downturn.

Our Operational Structure

We manage and report our business in two operating segments: an Industrial segment and a Printing segment. In the fiscal year ended December 31, 2010, our Industrial and Printing segments generated net sales of $535.9 million and $158.4 million, respectively. For the three months ended March 31, 2011, our Industrial and Printing segments generated net sales of $140.4 million and $38.1 million, respectively.

The Industrial segment is composed of three businesses that share manufacturing facilities and administrative resources. In our Electronic Solutions business, we design and formulate a complete line of proprietary “wet” dynamic chemistries that our customers use to coat or “plate” the surface of the printed circuit boards and other electronic components they manufacture. In our Industrial Solutions business, we provide dynamic chemistries for finishing, cleaning and providing surface coatings for a broad range of metal and non-metal surfaces. Through our Offshore Solutions business, we produce water-based hydraulic control fluids for major oil companies and drilling contractors for offshore deep water production and drilling applications.

We further divide each of these three businesses into three geographic regions: Asia, Europe and the Americas (which includes North America and South America). Our operations in Europe and the Americas are dominated by our Industrial Solutions business, and our operations in Asia are dominated by our Electronic Solutions business.

The Printing segment represents one business and is further subdivided into three geographic regions: Asia, Europe and the Americas. Our operations in the Printing segment are predominately in the Americas, although we intend to expand further into Europe and Asia. Through our Printing segment, we supply an extensive line of flexographic plates that are used in the commercial packaging and commercial printing industries. Over the last three years, we have shifted our business mix to refocus this segment on high innovation, higher cash flow businesses by divesting two capital intensive, lower growth businesses.

Because our businesses within the Industrial segment share facilities and resources and our business in the Printing segment is distinct from each of the businesses within the Industrial segment, we make decisions about how to manage our operations by reference to each segment and not with respect to the underlying businesses or geographic regions that comprise each segment.

The Acquisition

On April 12, 2007, MacDermid, Incorporated, which had been a publicly traded company since 1966, was acquired by a group led by our chairman and chief executive officer, Daniel H. Leever, Court Square and Weston Presidio. In connection with the Acquisition, MacDermid, Incorporated incurred significant indebtedness under our Credit Facilities and the Senior Subordinated Notes. The purchase price paid in connection with the

Acquisition was allocated to the acquired assets and assumed liabilities at their fair value. The purchase accounting adjustments (1) increased the carrying value of our property, plant and equipment, (2) established intangible assets for our tradenames, customer lists and developed technology and (3) established goodwill related to the difference between the purchase price and the fair value of the assets and liabilities as of the Acquisition date. Subsequent to the Acquisition, interest expense and non-cash depreciation and amortization charges significantly increased. During 2008, we incurred a non-cash impairment charge of $16.3 million to reduce the goodwill asset established at the time of the Acquisition. During 2009, we incurred non-cash impairment charges of $68.7 million to reduce the goodwill asset, customer lists, tradename and equipment assets established at the time of the Acquisition.

Outlook

In both of our segments, we continue to invest significant resources in research and development and in our intellectual property. We focus on growing revenues and generating cash from operations in order to build stockholder value. Specifically, we plan to improve revenue growth over the longer term by focusing on:

•

utilizing our technical capabilities, strong customer relationships, proprietary know how and knowledge of our industry to extend the breadth of our product offerings and to continue to grow internationally as our existing multinational customers penetrate into emerging regions;

•

capitalizing on our core competencies and developing new applications for our core processes to expand into high-growth markets that are adjacent to the markets we currently serve;

•

maintaining our focus on investing in technology and research and development;

•

leveraging our existing customer relationships to identify new product opportunities and develop new technologies;

•

reducing operating expenses through facility optimization, product and raw material rationalization and by maintaining a relatively fixed cost structure that supports increasing revenues as our strategies are successful;

•

maximizing cash flow to further invest in our business and reduce our indebtedness; and

•

attracting and retaining highly skilled employees who can serve our customers effectively.

As part of our efforts to expand our businesses globally, we also intend to selectively pursue strategic acquisitions, where and when appropriate, to expand or complement our existing operations. We expect that any such acquisitions will be consistent with our core businesses, will strengthen our relationships with our customers, and will enhance our existing products and technological capabilities or lower our operating costs.

Our ability to increase revenues in the future will depend, in part, on our success in penetrating our competitors’ markets, developing new and improved products, managing our raw material costs and leveraging our existing customer base across all product lines. We also continually evaluate ways to lower our operating costs, including by realigning existing manufacturing capacities, closing facilities, discontinuing certain operations or taking other similar actions.

Certain Key Conditions that Affect our Operations

Our industry is complex, competitive and global, and our products are sold into diverse, international markets, which expose us to certain risks, including certain trends or conditions that may materially affect our business. The trends and conditions that have the most significant impact on our business include those related to the global economy and our industry, our competitive landscape and foreign currency exposure.

Global Economic and Industry Conditions

Our products are sold in industries that are sensitive to changes in general economic conditions. Accordingly, our net sales, gross profit and financial condition depend significantly on general economic conditions and the impact of these conditions on demand for our dynamic chemistries and services in the markets in which we compete. Our business is particularly impacted by demand for chemistry products utilized in the automotive, printed circuit board, offshore oil production and commercial packaging industries. In 2009 and 2008, decreased global automotive demand and production cuts in the automotive markets as well as reduced demand in the industrial and commercial packaging market negatively impacted our net sales and profitability. Our net sales decreased by $150.1 million from 2008 to 2009, and our gross profit decreased by $40.1 million from 2008 to 2009.

Beginning in 2008, we began executing a series of operational restructuring initiatives that streamlined our organizational structure and reduced our workforce in our manufacturing, research and development, selling and technical and general and administrative functions. As of March 31, 2011, with the exception of finalizing certain operational restructuring programs in our Industrial Europe operations, we had completed the majority of these operational restructuring actions. In 2008, we also sold our Offset business because we determined it was not consistent with our business model.

Despite the severity of the economic downturn, our Adjusted EBITDA only decreased by $12.1 million from 2008 to 2009. The limited reduction in our Adjusted EBITDA results largely from the fact that our $150.1 million decrease in net sales and our $40.1 million decrease in gross profit from 2008 to 2009 were offset by a reduction in our operating expenses (excluding impairment charges) of $46.8 million during the same period. For a reconciliation of net income (loss) attributable to MacDermid, Incorporated to Adjusted EBITDA, see “Prospectus Summary—Summary Consolidated Financial Data” and the footnotes contained therein.

Beginning with the second quarter of 2009, we have experienced sequential quarterly increases in net sales in each quarter. Our net sales of $694.3 million for the year ended December 31, 2010 were 16.9% greater than our net sales for the year ended December 31, 2009. As a result, in 2010 we selectively increased our headcount and our capital expenditures to meet the required increase in production. We are currently experiencing more balance in our customer demand and inventory levels, and we expect that overall market conditions will continue to return to a more normalized level, although we cannot assure you that they will do so.

Our businesses are also significantly influenced by trends and characteristics in the specialty chemical industry and the printing industry. These industries are cyclical and subject to constant and rapid technological change, product obsolescence, price erosion, evolving standards, short product life-cycles, raw material price fluctuations and changes in product supply and demand.

The specialty chemical industry is currently being affected by globalization and a shift in our customers’ businesses out of traditional geographic markets and into high-growth, emerging markets. In 2010, operations in our Industrial segment continued to experience growth. Our Industrial Asia operations experienced sales growth of 24.3% for the year ended December 31, 2010 compared to the same period in 2009. We also experienced significant growth of 16.6% in our Industrial Americas operations and of 16.4% in our Industrial Europe operations for the year ended December 31, 2010 compared to the same period in 2009.

The printing industry is currently characterized by markets with more potential sellers than buyers, which reflects, in part, the newspaper closures and consolidations that have occurred during the past three years. We have experienced modest sales growth for our Printing segment during the year ended December 31, 2010 compared to the same period in 2009. Our business groups that supply photo-polymer plates continue to be affected by the overall soft market in the industry and by changes in our distribution system, as we are increasingly selling directly to our customers in the United States. Our sale of newspaper plates has been adversely impacted by recent newspaper closures and consolidations.

Net sales in future periods will depend, among other factors, upon a continued general improvement in global economic conditions, our ability to meet unscheduled or temporary changes in demand, and our ability to penetrate new markets with strategic product initiatives in specific targeted markets.

Our Competitive Landscape

Our industry is highly competitive, and most of our product lines compete against product lines from two or more competitors. In our Industrial segment, our products compete not only with similar products manufactured by our competitors, but also against a variety of chemical and non-chemical alternatives provided by our competitors.

New competitive products and processes or changes in the pricing policies of our competitors could materially affect demand for and pricing of our products, which could have a significant impact on our financial results. In addition, some of our competitors have greater financial, technical and marketing resources than we do and may be able to devote greater resources to promoting and selling certain products. Unlike many of our competitors who specialize in a single or limited number of product lines, we have a portfolio of businesses and must allocate resources across those businesses. Additionally, because many of our competitors are small divisions of large, international businesses, they may have access to greater resources than we do and may therefore be better able to withstand a change in conditions within our industry and throughout the economy as a whole. Although we face significant competition from specialty chemical companies and divisions of all shapes and sizes, we believe our business model enables us to retain the leading positions held by a majority of our operations in the product markets they serve, including the number one or number two market share positions held by Electronic Solutions and Industrial Solutions in the product markets they serve.

Foreign Currency Exposure

For the years ended December 31, 2010, 2009 and 2008, approximately 68%, 67% and 69% of our net sales were denominated in currencies other than the U.S. Dollar, respectively. For the quarters ended March 31, 2011 and 2010, approximately 68% and 68% of our net sales were denominated in currencies other than the U.S. Dollar, respectively. These currencies are predominantly the Euro, British Pound Sterling, Hong Kong Dollar, Chinese Yuan, Japanese Yen and Brazilian Real. We do not manage our foreign currency exposure in a manner that eliminates the effects of changes in foreign exchange rates on our net sales, cash flows or the fair values of our assets and liabilities. Therefore, our financial performance is positively or negatively impacted by changes in foreign exchange rates in any given reporting period. For most currencies, we are a net receiver of the foreign currency and therefore benefit from a weaker U.S. Dollar and are adversely affected by a stronger U.S. Dollar relative to the foreign currency.

For the year ended December 31, 2010, net sales were positively impacted as the U.S. Dollar weakened against the Chinese Yuan, Brazil Real and Japanese Yen when compared to 2009. However, the absolute impact on our 2010 net sales was not material.

Selected Statement of Operations Items

Net Sales

Revenue is generated from the sale of our specialty chemicals products and processes to our customers. Our net sales represent revenues generated by our total sales offset by the effect of any rebates and credits for products that are returned to us. We recognize revenue, including freight charged to customers, when our products are shipped to or received by our customers in accordance with the terms of the applicable sales agreement, when title and risk of loss have been transferred, collectability is probable and pricing is fixed or determinable. Sales arrangements may include right of inspection, acceptance provisions and transfer of title, in which case revenue is deferred until these provisions are satisfied.

Cost of Sales

Cost of sales consists primarily of raw material costs and related purchasing and receiving costs used in the manufacturing process, direct salary and wages and related fringe benefits, packaging costs, shipping and handling costs, plant overhead and other costs associated with the manufacture and distribution of our products.

Gross Profit

Our gross profit is significantly influenced by our raw material prices and our absorption rate. Our absorption rate refers only to our manufacturing facilities and is based on the capacity of the manufacturing facilities. As absorption rates increase, there is more operating leverage because fixed manufacturing costs are spread over higher output. Our gross profit margins are also significantly influenced by our raw material costs. Our gross profit margins have improved by approximately 29.6% since the fourth quarter of 2008 to 46.8% in the first quarter of 2011 due in large part to our operational restructuring programs and improved inventory management.

Selling, Technical and Administrative Expenses

Selling, technical and administrative expenses consist primarily of personnel and travel costs, advertising and marketing expenses, administrative expenses associated with accounting, finance, legal, human resources and risk management and overhead associated with these functions. Selling expenses consist primarily of compensation and associated costs for sales and marketing personnel, costs of advertising, trade shows and corporate marketing. Technical expenses consist primarily of compensation and associated costs for technical support personnel who support our products. General and administrative expense consists primarily of compensation and associated costs for executive management, finance, legal and other administrative personnel, outside professional fees and other corporate expenses.

Research and Development Expenses

Research and development expenses are expensed as incurred and include the cost of activities attributable to development and pre-production efforts associated with designing, developing and testing new or significantly enhanced products or process and packaging technology. These costs consist primarily of compensation and associated costs for our engineers engaged in the design and development of our products and technologies.

Other Operating Expenses

Amortization expense reflects the charges incurred to amortize our finite-lived intangible assets, such as developed technology and customer lists, which are amortized on a straight-line basis over their estimated useful lives. The estimated useful lives of the assets are currently ten years for developed technology and range between three and 21 years for customer lists.

Our operational restructuring expenses are related to the series of operational restructuring initiatives described above that we undertook beginning in 2008 as a result of the downturn in global economic conditions. As of March 31, 2011, with the exception of finalizing some operational restructuring programs in our Industrial Europe operations, we had completed the majority of these operational restructuring actions.

We do not amortize goodwill or other intangible assets that have indefinite useful lives; rather, goodwill and other intangible assets with indefinite lives are tested for impairment. Expenses for impairment charges are related to the write down of our goodwill balances and to our intangible assets balances. See “—Significant Accounting Policies and Critical Estimates” below for additional information.

Other Income (Expense)

Our interest income reflects the interest we receive on our investments, including those other than cash that are held on a short- and long-term maturity basis. Our interest expense reflect the interest we pay on our outstanding indebtedness. Our miscellaneous (expense) income results primarily from currency-related gains and losses that relate to our indebtedness that is denominated in currencies other than the U.S. Dollar, as discussed above.

Results of Operations

The following table summarizes certain information relating to our operating results that has been derived from our consolidated financial statements.


Statement of Operations Data:	Year ended December 31,									Three months ended March 31,
(amounts in thousands)	2010			2009			2008			2011			2010
										(unaudited)
Net sales	$	694,333		$	594,153		$	744,208		$	178,521		$	168,488
Cost of sales		371,223			333,963			443,939			94,980			89,667

Gross profit		323,110			260,190			300,269			83,541			78,821

Operating expenses:
Selling, technical and administrative		179,786			156,508			188,332			45,629			44,377
Research and development		21,005			20,103			25,093			5,359			5,048
Amortization		29,694			29,868			31,179			7,362			7,499
Restructuring (1)		6,234			4,228			12,931			(181	)		672
Impairment charges (2)		—			68,692			16,303			—			—

Total operating expenses		236,719			279,399			273,838			58,169			57,596

Operating profit (loss)		86,391			(19,209	)		26,431			25,372			21,225

Other income (expense):
Interest income		696			458			1,870			108			155
Interest expense (3)		(56,196	)		(60,740	)		(75,060	)		(14,088	)		(15,025	)
Miscellaneous income (expense) (4)		15,106			(5,020	)		9,655			(16,172	)		9,521

Income (loss) from continuing operations before income taxes, non-controlling interest and accumulated payment-in-kind dividend on cumulative preferred shares		45,997			(84,511	)		(37,104	)		(4,780	)		15,876
Income tax (expense) benefit		(21,723	)		6,427			(1,059	)		(1,145	)		(8,417	)

Income (loss) from continuing operations		24,274			(78,084	)		(38,163	)		(5,925	)		7,459
(Loss) income from discontinued operations, net of tax (5)		—			(4,448	)		2,316			—			—

Net income (loss)		24,274			(82,532	)		(35,847	)		(5,925	)		7,459
Less net income attributable to the non-controlling interest		(343	)		(295	)		(207	)		(88	)		(80	)

Net income (loss) attributable to MacDermid, Incorporated	$	23,931		$	(82,827	)	$	(36,054	)	$	(6,013	)	$	7,379

(1)

(2)	In 2009, we recorded (i) impairment charges of $41.2 million related to a write down of our goodwill balance to its estimated fair value as determined in accordance with ASC 350, (ii) an impairment charge of $26.1 million

related to a write down of an indefinite-lived purchased intangible asset to its estimated fair value as determined in accordance with ASC 350, (iii) an impairment charge of $0.2 million related to a write down of a finite-lived purchased intangible asset to its estimated fair value as determined in accordance with ASC 350 and (iv) an impairment charge of $1.2 million related to a write down of equipment to its estimated fair value as determined in accordance with ASC 360 “Property, Plant and Equipment”. In 2008, we recorded an impairment charge of $16.3 million related to a write down of our goodwill balance to its estimated fair value as determined in accordance with ASC 350. For a detailed description of these impairment charges see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 4 to our audited financial statements included in this prospectus.

(3)	Primarily reflects interest expense associated with our long-term debt for periods after the Acquisition.

(4)

Represents mark-to-market (gain) loss on foreign denominated debt as a result of changes in foreign exchange rates. For a detailed description of these mark-to-market gains/losses charges, see the discussion of our miscellaneous (expense) income in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 16 to our audited financial statements included in this prospectus.

(5)	Reflects loss (gain) from discontinued operations related to the sale of Offset in 2008 and the sale of our ColorSpan printing business in 2007. All operating results exclude amounts associated with discontinued operations.

The following table summarizes certain information relating to our operating results as a percentage of total revenues and has been derived from the financial information presented above. We believe this presentation is useful to investors in comparing historical results. Certain amounts in the table may not sum due to the rounding of individual components.


	Year ended December 31,									Three months ended March 31,
	2010			2009			2008			2011			2010
Net sales		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales		53.5	%		56.2	%		59.7	%		53.2	%		53.2	%
Gross profit		46.5	%		43.8	%		40.3	%		46.8	%		46.8	%
Operating expenses:
Selling, technical and administrative		25.9	%		26.3	%		25.3	%		25.6	%		26.3	%
Research and development		3.0	%		3.4	%		3.4	%		3.0	%		3.0	%
Amortization		4.3	%		5.0	%		4.2	%		4.1	%		4.5	%
Restructuring		0.9	%		0.7	%		1.7	%		-0.1	%		0.4	%
Impairment charges			*		11.6	%		2.2	%			*			*
Total operating expenses		34.1	%		47.0	%		36.8	%		32.6	%		34.2	%
Operating profit (loss)		12.4	%		-3.2	%		3.6	%		14.2	%		12.6	%
Other income (expense):
Interest income		0.1	%		0.1	%		0.3	%		0.1	%		0.1	%
Interest expense		-8.1	%		-10.2	%		-10.1	%		-7.9	%		-8.9	%
Miscellaneous (expense) income		2.2	%		-0.8	%		1.3	%		-9.1	%		5.7	%
Income (loss) from continuing operations before income taxes, non-controlling interest and accumulated payment-in-kind dividend on cumulative preferred shares		6.6	%		-14.2	%		-5.0	%		-2.7	%		9.4	%
Income tax (expense) benefit		-3.1	%		1.1	%		-0.1	%		-0.6	%		-5.0	%
Income (loss) from continuing operations		3.5	%		-13.1	%		-5.1	%		-3.3	%		4.4	%
(Loss) income from discontinued operations, net of tax			*		-0.7	%		0.3	%			*			*
Net income (loss)		3.5	%		-13.9	%		-4.8	%		-3.3	%		4.4	%
Less net income attributable to the non-controlling interest			*			*			*			*			*
Net income (loss) attributable to MacDermid, Incorporated		3.5	%		-13.9	%		-4.8	%		-3.4	%		4.4	%

*	Not meaningful.

Three Months Ended March 31, 2011 Compared to Three Months Ended March 31, 2010

Net Sales

Our net sales of $178.5 million for the three months ended March 31, 2011 increased by $10.0 million, or 6.0%, compared to the same period in 2010. Our net sales for the three months ended March 31, 2011 were positively impacted by $3.9 million due to the decrease in value of the U.S. Dollar during the first quarter of 2011 compared to the same period in 2010. Our Industrial segment had higher net sales for the three months ended March 31, 2011 of $11.9 million, or 9.3%, compared to the same period in 2010. Our Printing segment had lower net sales for the three months ended March 31, 2011 of $1.9 million, or 4.7%, compared to the same period in 2010.

Our Industrial Europe operations had the largest increase in net sales among the operations in our Industrial segment for the three months ended March 31, 2011, of $5.0 million, or 11.0%, due to an increase in our industrial product sales and a stronger British Pound Sterling. Net sales also increased in our Industrial Americas and Asia operations for the three months ended March 31, 2011, compared to the same period in 2010, because of increased customer demand for industrial and electronic products. Our Printing Europe operations had lower net sales for the three months ended March 31, 2011, of $3.3 million, or 21.3%, compared to the same period in 2010, due to lower sales volumes of newspaper plates and related equipment sales in Europe. Our Printing Americas operations reported higher net sales levels for the three months ended March 31, 2011 of $1.7 million, or 8.7%, compared to the same period in 2010 due to stronger customer demand for digital printing sheets. Our Printing Asia operations had lower net sales for the three months ended March 31, 2011 of $0.3 million, or 5.7%, compared to the same period in 2010 because of the expiration of a consignment distribution sales agreement of Offset products in 2010.

Gross Profit

For the three months ended March 31, 2011, our gross profit increased $4.7 million, or 6.0%, compared to same period in 2010. The increase of $4.7 million for the three months ended March 31, 2011 compared to the same period in 2010 was attributable to higher net sales offset by increased raw material costs. As a percentage of net sales, gross profit for the three months ended March 31, 2011 was 46.8%, which was unchanged compared to the same period in 2010. Although we experienced higher raw material costs, our gross profit percentage remained unchanged due to efficiencies generated from manufacturing facilities and reduced headcount.

Selling, Technical and Administrative Expenses

Our selling, technical and administrative expenses increased $1.3 million, or 2.8%, for the three months ended March 31, 2011 compared to the same period in 2010. This increase was primarily the result of higher selling expenses associated with our higher first quarter 2011 sales and an increase in salary expenses in the first quarter of 2011, offset by lower corporate bonus expense of $1.5 million recorded for the three months ended March 31, 2011 compared to the same period in 2010. As a percentage of our net sales, our selling, technical and administrative expenses were 25.6% for the three months ended March 31, 2011, compared to 26.3% for the same period in 2010. This decrease is primarily due to the increase in sales for the three months ended March 31, 2011 compared to the same period in 2010.

Research and Development Expenses

Our research and development expenses for the three months ended March 31, 2011 increased $0.3 million, or 6.2%, from the same period in 2010. This increase was primarily due to an increase in salary expenses in the third quarter of 2010 that resulted from the termination of the salary reduction measures that we implemented in 2008 and increased research and development activity during the first quarter of 2011 compared to the same period in 2010. As a percentage of our net sales, our research and development expenses were 3.0% for the three months ended March 31, 2011, which was unchanged compared to the same period in 2010.

Amortization Expenses for Finite-Lived Purchased Intangible Assets

Amortization expenses for finite-lived purchased intangible assets related to developed technology and customer lists for the three months ended March 31, 2011 decreased by $0.1 million, or 1.8%, compared to the same period in 2010. This decrease is associated with a portion of our customer lists being fully amortized during 2010.

Interest Expense

Interest expense for the three months ended March 31, 2011 decreased by $0.9 million, or 6.2%, compared to the same period in 2010 due to lower debt balances outstanding during the first quarter of 2011 compared to the same period in 2010.

Miscellaneous (Expense) Income

Miscellaneous expense for the three months ended March 31, 2011 was $16.2 million compared to the $9.5 million of miscellaneous income recorded during the same period in 2010. This difference was due primarily to a mark-to-market charge on our Euro denominated debt. For the three months ended March 31, 2011, we recorded a mark-to-market loss of $10.1 million on our Euro denominated debt, as the Euro increased in value by 6.0% against the U.S. Dollar from December 31, 2010 to March 31, 2011. For the three months ended March 31, 2010, we recorded a mark-to-market gain of $10.6 million on our Euro denominated debt as the Euro decreased in value by 5.6% against the U.S. Dollar from December 31, 2009 to March 31, 2010. For the three months ended March 31, 2011, we recorded a mark-to-market loss of $6.3 million on our foreign denominated intercompany loans compared to a mark-to-market loss of $0.9 million recorded for the same period in 2010.

Income Tax Expense

For the three months ended March 31, 2011, our effective tax rate was (24%) versus 53% for the same period in 2010. Earnings before tax and foreign exchange gain or loss increased by $3.4 million for the three months ended March 31, 2011 compared to the same period in 2010, whereas tax expense decreased by $0.6 million for the three months ended March 31, 2011 compared to the same period in 2010. This was a result of the earnings mix of our operations within taxing jurisdictions. The tax effect of foreign exchange gains and losses are accounted for as a discrete item in the period in which they are incurred. Foreign exchange gains decreased $24.9 million for the three months ended March 31, 2011 compared to the same period in 2010, resulting in an overall loss of $(14.5) million in 2011 with a corresponding decrease in tax of $6.6 million for the three months ended March 31, 2011 compared to the same period in 2010. The impact of the foreign exchange gain/loss results in a deferred tax benefit which does not offset the current tax expense for the earnings of the profitable entities in taxing jurisdictions.

Segment Reporting

The following discussion breaks down our net sales and operating profit by operating segment for the three months ended March 31, 2011 compared to the same period in 2010.

Industrial— Net sales increased by $11.9 million, or 9.3%, for the three months ended March 31, 2011 as compared to the same period in 2010. Our Industrial Europe operations experienced the highest net sales growth among the operations in our Industrial segment for the three months ended March 31, 2011 of $5.0 million, or 11.0%, due to an increase in our industrial product sales and a stronger British Pound Sterling. Net sales also increased in our Industrial Americas and Asia operations for the three months ended March 31, 2011 compared to the same period in 2010 because of increased customer demand for industrial and electronic products. Operating profit for the three months increased by $4.2 million, or 26.5%, for the three months ended March 31, 2011 as compared to the same period in 2010. The increase in operating profit is due to higher operating profit in our Industrial Americas operations due to higher industrial demand, higher operating profit in our Industrial

Europe operations due to lower operating costs as a result of previous restructuring programs and higher industrial demand, offset by a slight decrease is our Industrial Asia operations operating profit because of increased raw material costs.


	Three months ended March 31,				2010 to 2011 % Change
(amounts in thousands)	2011		2010		2010 to 2011 % Change
					Favorable (Unfavorable)
Industrial
Net sales	$	140,435	$	128,531		9.3	%
Operating profit	$	19,847	$	15,685		26.5	%

Printing— Net sales decreased by $1.9 million, or 4.7%, for the three months ended March 31, 2011 as compared to the same period in 2010. Our Printing Europe operations had lower sales for the three months ended March 31, 2011 of $3.3 million, or 21.3%, compared to the same period in 2010 due to lower sales volumes of newspaper plates and related equipment sales in Europe. Our Printing Americas operations reported higher net sales levels for the three months ended March 31, 2011 of $1.7 million, or 8.7%, compared to the same period in 2010 due to stronger customer demand for digital printing sheets and the introduction of new products. Our Printing Asia operations had lower net sales for the three months ended March 31, 2011 of $0.3 million, or 5.7%, compared to the same period in 2010 because of the expiration of a consignment distribution sales agreement of Offset products in 2010. Operating profit for the three months ended March 31, 2011 was unchanged compared to the same period in 2010. Our Printing Americas operations had higher operating profit for the three months ended March 31, 2011 compared to the same period in 2010 because of the introduction of higher margin products in 2011. Offsetting this increase was lower operating profit for our Printing Europe operations for the three months ended March 31, 2011 compared to the same period in 2010 because of lower sales for the three months ended March 31, 2011 compared to the same period in 2010. Depreciation and amortization in our Printing segment remained unchanged for the three months ended March 31, 2011 compared to the same period in 2010.


	Three months ended March 31,				2011 to 2010 % Change
(amounts in thousands)	2011		2010		2011 to 2010 % Change
					Favorable (Unfavorable)
Printing
Net sales	$	38,086	$	39,957		(4.7	)%
Operating profit	$	5,525	$	5,540		(0.3	)%

Year Ended December 31, 2010 Compared to Year Ended December 31, 2009

Net Sales

Our net sales of $694.3 million for the year ended December 31, 2010 increased by $100.2 million, or 16.9%, compared to the same period in 2009. Our net sales for the year ended December 31, 2010, were positively impacted by $3.4 million due to the decrease in value of the U.S. Dollar during the year ended December 31, 2010 compared to the same period in 2009.

Our Industrial segment had higher net sales for the year ended December 31, 2010 of $86.9 million, or 19.3%, compared to the same period in 2009. Our Printing segment had higher net sales for the year ended December 31, 2010 of $13.3 million, or 9.2%. Our 2010 net sales were positively impacted as economic conditions improved in 2010, and we experienced higher demand for our industrial products used in the automotive sector and our electronic products used in consumer and industrial electronic products.

Our Industrial Asia operations experienced the highest net sales growth among the operations in our Industrial segment for the year ended December 31, 2010 of $39.6 million, or 24.3%, due to an increase in both electronic and industrial product sales and a weaker U.S. Dollar against Asian currencies. Net sales also increased in our Industrial Americas and Europe operations for the year ended December 31, 2010 compared to the same period in 2009 because of increased customer demand for industrial and electronic products. Our Printing Americas operations had higher net sales for the year ended December 31, 2010 of $9.8 million, or 13.1%, compared to the same period in 2009, due to higher demand for our digital printing sheets utilized in commercial printing. Our Printing Asia and Europe operations also had higher net sales levels for the year ended December 31, 2010 compared to 2009 due to stronger customer demand for digital printing sheets.

Gross Profit

For the year ended December 31, 2010, our gross profit increased $62.9 million, or 24.2%, compared to the same period in 2009. As a percentage of net sales, gross profit for the year ended December 31, 2010 was 46.5% compared to 43.8% in 2009. The overall increase was attributable to higher net sales, which was offset by increased raw material costs. The increase in gross profit as a percentage of sales from 2009 to 2010 was also positively impacted by the operational restructuring programs discussed above, which significantly decreased our manufacturing costs in 2009 and were effective for a full year in 2010. As discussed above, we have experienced higher raw material costs used in the manufacturing process in certain products, which adversely impacted our gross profit percentage.

Selling, Technical and Administrative Expenses

Our selling, technical and administrative expenses increased $23.3 million, or 14.9%, for the year ended December 31, 2010, compared to the same period in 2009. This increase was primarily the result of higher selling expenses associated with our higher 2010 sales compared to 2009 and increased bonus expense of $8.1 million recorded in 2010 compared to 2009. As a percentage of our net sales, our selling, technical and administrative expenses were 25.9% for the year ended December 31, 2010, which was lower than the 2009 percentage of 26.3%. The decrease of 0.4% was primarily attributable to the higher sales in 2010 compared to 2009.

Research and Development Expenses

Our research and development expenses increased $0.9 million, or 4.5%, for the year ended December 31, 2010, compared to the same period in 2009. This increase was primarily due to an increase in salary expenses in the third quarter of 2010 that resulted from the termination of the salary reduction measures that we implemented in 2008 and a slight increase in the headcount of personnel from 2009 to 2010. As a percentage of our net sales, our research and development expenses were 3.0% for the year ended December 31, 2010, which was lower than the 2009 percentage of 3.4%. The decrease of 0.4% was primarily attributable to the higher sales in 2010 compared to 2009.

Amortization Expenses for Finite-Lived Purchased Intangible Assets

Amortization expenses for finite-lived purchased intangible assets related to developed technology and customer lists for the year ended December 31, 2010 decreased by $0.2 million, or 0.6%, compared to the same period in 2009. This decrease is associated with a portion of our customer lists being fully amortized during 2010.

Operational Restructuring Expenses

During the year ended December 31, 2010, we recorded $6.2 million of operational restructuring expenses. We recorded $3.1 million related to the elimination of 39 positions in our Industrial segment operations. We also recorded operational restructuring expenses of $0.4 million related to lease termination cost, and long term asset

write down expense of $2.4 million, equipment disposal expense of $0.2 million and other miscellaneous costs of $0.2 million in our Industrial segment operations. We also reversed $0.1 million of operational restructuring charges related to accrued benefits in our Industrial segment operations as the amounts were no longer due to employees.

During the year ended December 31, 2009, we recorded $3.0 million of operational restructuring expense in our Industrial segment operations related to the elimination of 134 positions and $0.6 million in our Printing segment operations related to the elimination of 41 positions. During this same period, we recorded a $0.1 million charge to operational restructuring related to other miscellaneous costs associated with the operational restructuring program in our Industrial segment operations and $0.8 million of facility costs in our Industrial segment operations related to moving a manufacturing facility in the United Kingdom. During the year ended December 31, 2009, we reversed operational restructuring expenses of $0.3 million for 2008 operational restructuring programs in our Printing segment operations.

Impairment Charges

We did not record any impairment charges for the year ended December 31, 2010 compared to impairment charges of $68.7 million recorded for the year ended December 31, 2009. The impairment charges recorded for the year ended December 31, 2009, were primarily related to goodwill and intangible assets established in connection with the Acquisition. During the year ended December 31, 2009, we recorded an impairment charge of $41.2 million related to our goodwill balance. This impairment charge was recorded in our Industrial segment to write down the goodwill balances in those operations to their estimated fair values in connection with our annual impairment testing of goodwill and intangible assets. We also recorded an impairment charge for the year ended 2009 of $26.1 million related to a corporate tradename to record the tradename intangible asset at its estimated fair value. We also recorded a $0.2 million impairment charge during the year ended December 31, 2009 for a customer list intangible asset in our Industrial segment related to a strategic business decision to exit a certain market. Finally, we recorded an impairment charge of $1.2 million during the year ended December 31, 2009 in our Printing segment to write down the value of certain equipment to its estimated fair value.

Interest Expense

Interest expense for the year ended December 31, 2010 decreased by $4.5 million, or 7.5%, compared to the same period in 2009 due to lower debt balances outstanding during 2010 compared to 2009, and lower interest rates in 2010 compared to 2009 on our floating rate debt.

Miscellaneous (Expense) Income

Miscellaneous income for the year ended December 31, 2010 was $15.1 million compared to $5.0 million of miscellaneous expense recorded during the same period in 2009. This difference was due primarily to the mark-to-market charge on our Euro denominated debt. For the year ended December 31, 2010, we recorded a mark-to-market gain of $11.0 million on our Euro denominated debt, due to the 7.3% decrease in the value of the Euro compared to the U.S. Dollar from December 31, 2009 to December 31, 2010. For the year ended December 31, 2009, we recorded a mark-to-market loss of $4.2 million on our Euro denominated debt, due to the 2.5% increase in the value of the Euro compared to the U.S. Dollar from December 31, 2008 to December 31, 2009. For the year ended December 31, 2010, we recorded a mark-to-market gain of $6.4 million on our foreign denominated intercompany loans compared to a mark-to-market loss of $0.9 million recorded for the same period in 2010. For the year ended December 31, 2010, we recorded a loss of $1.3 million on settled foreign currency hedges compared to a gain of $1.4 million for the same period in 2009.

Income Tax Expense

For the year ended December 31, 2010, our effective tax rate was 47.2%. Included in the 2010 income tax expense is a reserve of approximately $5.6 million for uncertain tax benefits which significantly increased the 2010 effective tax rate. We are a U.S. based company with a statutory income tax rate of 35%. However, we

operate in 23 foreign countries, which have tax rates different from the U.S. statutory tax rate. Our 2010 annual effective tax rate differed from the U.S. statutory rate of 35% in 2010 due to: (1) the imposition of taxes at different tax jurisdictions combined with the earnings mix in these taxing jurisdictions, (2) the recognition of taxes on certain foreign earnings in which management feels that the earnings will be repatriated in the future, (3) the effect of uncertain tax positions and (4) the effect of valuation allowances.

In 2009, our effective tax rate was a benefit of 7.6%. In 2009, we incurred significant charges for goodwill and intangible assets impairments which were not tax deductible and resulted in a reduction of the tax benefit by $11.1 million. During the year ended December 31, 2009, we also incurred a tax charge of $12.6 million for uncertain tax positions. Our annual effective tax rate differed from the U.S. statutory tax rate of 35% in 2009 due to (1) the imposition of taxes at different tax jurisdictions combined with the earnings mix in these taxing jurisdictions, (2) the impact of tax rate changes in certain taxing jurisdiction during 2009 which result in a change to accumulated deferred tax balances and a tax benefit to the 2009 tax rate, (3) the impact of reconciliations from prior years tax returns which resulted in a benefit to the 2009 tax rate, (4) the effect of goodwill and intangible assets impairment charges, and (5) the effect of uncertain tax positions.

Segment Reporting

The following discussion breaks down our net sales and operating profit by operating segments for the year ended December 31, 2010 compared to the same period in 2009.

Industrial—Net sales increased by $86.9 million, or 19.3%, for the year ended December 31, 2010 as compared to the same period in 2009. Our Industrial Asia operations experienced the largest net sales increase among the operations in our Industrial segment for 2010 of $39.6 million, or 24.3%, due to an increase in both electronic and industrial product sales and a weaker U.S. Dollar against Asian currencies. Net sales also increased in our Industrial Americas and Europe operations for 2010 compared to 2009, because of increased customer demand for industrial and electronic products. Operating profit for the year ended December 31, 2010 for the Industrial segment increased by $98.0 million, or 297.5%, as compared to the same period in 2009. The $98.0 million increase is attributable to the two following factors: (1) for the year ended December 31, 2009, our Industrial segment’s operating profit was negatively impacted by $67.5 million of impairment charges for goodwill, customer lists and tradenames that were not present in the year ended December 31, 2010 and (2) all of our Industrial operations had higher operating profits due to increased sales because global economic conditions improved in 2010 compared to 2009. Depreciation and amortization in our Industrial segment decreased by $1.1 million, or 2.7%, for the year ended December 31, 2010 compared to the same period in 2009. The decrease was primarily attributable to a lower base of depreciable assets in our Industrial Europe operations due to equipment write-downs recorded in 2010.


	Year ended December 31,					2009 to 2010 % Change
(amounts in thousands)	2010		2009			2009 to 2010 % Change
						Favorable (Unfavorable)
Industrial
Net sales	$	535,945	$	449,059			19.3	%
Operating profit (loss)	$	65,053	$	(32,930	)		297.5	%

Printing—Net sales increased by $13.3 million, or 9.2%, for the year ended December 31, 2010 as compared to the same period in 2009. Our Printing Americas operations had higher net sales for 2010 of $9.8 million, or 13.1%, compared to 2010, due to higher demand for our digital printing sheets utilized in commercial printing. Our Printing Asia and Europe operations also reported higher sales levels for 2010 compared to 2009 due to stronger customer demand for digital printing sheets. Operating profit for the year ended December 31, 2010 increased by $7.6 million, or 55.5%, compared to 2009. All of our Printing operations experienced higher operating profit for the year ended December 31, 2010 compared to the same period in 2009 due to the higher

sales recorded in 2010, lower operating costs recognized in 2010 in the Printing Americas operations because of a restructuring program implemented in 2009 that lowered personnel levels and closed underutilized manufacturing facilities and a $1.2 million equipment impairment charge recorded in the Printing operations in 2009 not present in 2010.


	Year ended December 31,				2009 to 2010 % Change
(amounts in thousands)	2010		2009		2009 to 2010 % Change
					Favorable (Unfavorable)
Printing
Net sales	$	158,388	$	145,094		9.2	%
Operating profit	$	21,338	$	13,721		55.5	%

Year Ended December 31, 2009 Compared to Year Ended December 31, 2008

Net Sales

Our net sales of $594.2 million for the year ended December 31, 2009 decreased by $150.1 million, or 20.2%, compared to the same period in 2008. Our net sales for the year ended December 31, 2009, were negatively impacted by $31.5 million due to the increase in value of the U.S. Dollar during the year ended December 31, 2009 compared to the same period in 2008. Our Industrial segment had lower net sales for the year ended December 31, 2009 of $134.9 million, or 23.1%, compared to the same period in 2008. Our Printing segment had lower net sales for the year ended December 31, 2009 of $15.1 million, or 9.4%, compared to the same period in 2008. Our 2009 net sales were dramatically impacted by the global recession that began in the second half of 2008. Our product demand was adversely impacted, especially in the automotive, electronics and commercial printing sectors, because of difficult economic conditions throughout 2009.

We experienced lower net sales in the majority of our Industrial and Printing operations for the year ended December 31, 2009 compared to the same period in 2008. Our Industrial Europe operations experienced the highest net sales decrease among the operations in our Industrial segment for the year ended December 31, 2009 of $71.9 million, or 31.7%, due to a decrease in both electronic and industrial product sales and a stronger U.S. Dollar against European currencies. Net sales also decreased in our Industrial Americas and Asia operations for the year ended December 31, 2009 compared to the same period in 2008, because of decreased customer demand for industrial and electronic products. Our Printing Europe operations had the highest net sales decrease among the operations in our Printing segment for the year ended December 31, 2009 of $10.4 million, or 16.8%, compared to the same period in 2008, due to significantly decreased demand for our digital printing sheets utilized in commercial printing and newspaper plates utilized in newspaper printing. Our Printing Americas and Asia operations also had lower net sales levels for the year ended December 31, 2009 compared to 2008 due to lower customer demand for digital printing sheets and newspaper plates.

Gross Profit

For the year ended December 31, 2009, our gross profit decreased $40.1 million, or 13.3%, compared to the same period in 2008. The decrease was primarily attributable to lower 2009 net sales. As a percentage of net sales, gross profit for the year ended December 31, 2009 was 43.8% compared to 40.3% in 2008. Gross profit percentage from 2008 to 2009 was positively impacted by our operational restructuring programs, which significantly decreased our manufacturing costs in 2008 and were carried forward for a full year into 2009.

Selling, Technical and Administrative Expenses

Our selling, technical and administrative expenses decreased $31.8 million, or 16.9%, for the year ended December 31, 2009, compared to the same period in 2008. This decrease was primarily the result of lower selling expenses associated with our lower 2009 sales compared to 2008 and lower compensation expense due to salary

reduction measures implemented in the fourth quarter of 2008. As a percentage of our net sales, our selling, technical and administrative expenses were 26.3% for the year ended December 31, 2009, which was higher than the 2008 percentage of 25.3%. The increase of 1.0% is primarily attributable to the lower sales in 2009 compared to 2008.

Research and Development Expenses

Our research and development expenses decreased $5.0 million, or 19.9%, for the year ended December 31, 2009, compared to the same period in 2008. This decrease was primarily due to the salary reduction measures, which were in place for the full 2009 year, and a reduction in research and development headcount from 2008 to 2009. As a percentage of our net sales, our research and development expense was 3.4% for the year ended 2009, which was flat with the 2008 percentage of 3.4%.

Amortization Expenses for Finite-Lived Purchased Intangible Assets

Amortization expenses for finite-lived purchased intangible assets related to developed technology and customer lists for the year ended December 31, 2009, decreased by $1.3 million, or 4.2%, compared to the same period in 2008. This decrease was due to a stronger U.S. Dollar against primarily European currencies in 2009 versus 2008, which resulted in lower expense recorded.

Operational Restructuring Expenses

During the year ended December 31, 2008, we recorded $1.7 million of operational restructuring expense in our Industrial segment operations related to the elimination of 88 positions and $3.5 million in our Printing segment operations related to the elimination of 70 positions. The company also recorded equipment impairment charges of $6.8 million and other charges of $1.0 million associated with the 2008 operational restructuring programs.

Impairment Charges

The impairment charge of $16.3 million recorded for the year ended December 31, 2008 related to writing down the goodwill balances of the Industrial segment to their estimated fair values based upon our 2008 goodwill impairment test. As part of our financial reporting process for the year ended December 31, 2008, we did not identify any triggering events that would have caused us to perform additional impairment analysis under ASC 350.

Interest Expense

Interest expense for the year ended December 31, 2009, decreased by $14.3 million, or 19.1%, compared to the same period in 2008 due to lower debt balances outstanding during 2009 compared to 2008, and significantly lower interest rates in 2009 compared to 2008 on our floating rate debt.

Miscellaneous (Expense) Income

Miscellaneous expense for the year ended December 31, 2009 was $5.0 million compared to $9.7 million of miscellaneous income recorded during the same period in 2008. This difference was due primarily to the mark-to-market charge on our Euro denominated debt. For the year ended December 31, 2009, we recorded a mark-to-market loss of $4.2 million on our Euro denominated debt, due to the 2.5% increase in the value of the Euro compared to the U.S. Dollar from December 31, 2008 to December 31, 2009. For the year ended December 31, 2008, we recorded a mark-to-market gain of $4.7 million on our Euro denominated debt, due to the 4.3% decrease in the value of the Euro compared to the U.S. Dollar from December 31, 2007 to December 31, 2008. For the year ended December 31, 2009, we recorded foreign currency losses on settled transactions of $1.9 million compared to a gain of $4.8 million for the same period in 2008. For the year ended December 31, 2009, we recorded a gain on settled foreign currency derivative hedges of $1.4 million compared to $0 for the same period in 2008.

Income Tax Expense

In 2009, our effective tax rate was a benefit of 7.6%. In 2009, we incurred significant charges for goodwill and intangible assets impairments which were not tax deductible and resulted in a reduction of the tax benefit by $11.1 million. During the year ended December 31, 2009, we also incurred a tax charge of $12.6 million for uncertain tax positions, which included an immaterial adjustment for prior years. Our annual effective tax rate differed from the U.S. statutory tax rate of 35% in 2009 due to (1) the imposition of taxes at different tax jurisdictions combined with the earnings mix in these taxing jurisdictions, (2) the impact of tax rate changes in certain taxing jurisdiction during 2009 which result in a change to accumulated deferred tax balances and a tax benefit to the 2009 tax rate, (3) the impact of reconciliations from prior years tax returns which resulted in a benefit to the 2009 tax rate, (4) the effect of goodwill and intangible assets impairment charges and (5) the effect of uncertain tax positions.

In 2008, our effective tax rate was 2.9%. Our annual effective tax rate differed from the U.S. statutory tax rate of 35% in 2008 due to (1) the imposition of taxes at different tax jurisdictions combined with the earnings mix in these taxing jurisdictions, (2) the impact of tax rate changes in certain taxing jurisdiction during 2008 which result in a change to accumulated deferred tax balances and a tax benefit to the current year tax rate, (3) the impact of reconciliations from prior years tax returns which resulted in a benefit to the current year tax rate, (4) the recognition of taxes on certain foreign earnings in which management feels that the earnings will be repatriated in the future and (5) the effect of uncertain tax positions.

Segment Reporting

The following discussion breaks down our net sales and operating profit by operating segments for the year ended December 31, 2009 compared to the same period in 2008.

Industrial—Net sales decreased by $134.9 million, or 23.1%, for the year ended December 31, 2009 as compared to the same period in 2008. We experienced lower net sales in the majority of our Industrial and Printing operations for the year ended December 31, 2009 compared to the same period in 2008. Our Industrial Europe operations experienced the highest net sales decrease among the operations in our Industrial segment for 2009 of $71.9 million, or 31.7%, due to a decrease in both electronic and industrial product sales and a weaker U.S. Dollar against European currencies. Net sales also decreased in our Industrial Americas and Asia operations for 2009 compared to 2008, because of decreased customer demand for industrial and electronic products. Operating profit (loss) for the year ended December 31, 2009 for the Industrial segment decreased by $57.2 million, or 235.9%, as compared to the same period in 2008. The $57.2 million decrease is attributable to the two following factors: (1) For the year ended December 31, 2009 our Industrial segment’s operating profit was negatively impacted by $67.5 million of impairment charges for goodwill, customer lists and tradenames recorded compared to a goodwill impairment charge of $16.3 million recorded in the same period in 2008 and (2) all of our Industrial operations had lower operating profits due to decreased sales because global economic conditions improved for the year ended December 31, 2009 compared to the same period in 2008. Depreciation and amortization in our Industrial segment decreased by $2.6 million, or 6.1%, for the year ended December 31, 2009 compared to the same period in 2008. The decrease was primarily attributable to a stronger U.S. Dollar for 2009 as compared to 2008, which caused lower depreciation and amortization expense in 2009 compared to 2008.


	Year ended December 31,					2008 to 2009 % Change
(amounts in thousands)	2009			2008		2008 to 2009 % Change
						Favorable (Unfavorable)
Industrial
Net sales	$	449,059		$	583,997		(23.1	)%
Operating (loss) profit	$	(32,930	)	$	24,236		(235.9	)%

Printing—Net sales decreased by $15.1 million, or 9.4%, for the year ended December 31, 2009 as compared to the same period in 2008. Our Printing Europe operations had the largest decrease in net sales among

the operations in our Printing segment for the year ended December 31, 2009 of $33.3 million, or 39.3%, compared to the same period in 2008, due to significantly decreased demand for our digital printing sheets utilized in commercial printing and newspaper plates utilized in newspaper printing. Our Printing Americas and Asia operations also reported lower sales levels for the year ended December 31, 2009 compared to the same period in 2008 due to lower customer demand for digital printing sheets and newspaper plates. Our operating profit for the year ended December 31, 2009 increased by $11.5 million, or 525.0%, as compared to the same period in 2009. This increase was due to a reduction of $6.4 million of restructuring expenses recorded for the year ended December 31, 2009 compared to the same period in 2008. Salary and benefit expense was significantly lower for our Printing segment for the year ended December 31, 2009 compared to the same period in 2008 because of measures taken to reduce operating costs and salary implemented in 2009 due to the economic slowdown. Offsetting these reduced expenses was an equipment impairment charge of $1.2 million recorded in the year ended December 31, 2009 not present for the same period in 2008. Depreciation and amortization in our Printing segment decreased by $0.9 million, or 1.0%, for the year ended December 31, 2009 compared to the same period in 2008. The decrease was primarily attributable to a stronger U.S. Dollar for 2009 as compared to 2008, which caused lower depreciation and amortization expense in 2009 compared to 2008.


	Year ended December 31,				2008 to 2009 % Change
(amounts in thousands)	2009		2008		2008 to 2009 % Change
					Favorable (Unfavorable)
Printing
Net sales	$	145,094	$	160,211		(9.4	)%
Operating profit	$	13,721	$	2,195		525.1	%

Operational Restructuring

We have executed a series of operational restructuring initiatives since the Acquisition to streamline our cost structure and consolidate our global manufacturing activities. These actions have reduced our workforce in our manufacturing, research and development and sales, technical and administrative functions.

At each reporting date, we evaluate our accruals for operational restructuring activities, which consist primarily of termination benefits (principally severance payments), to ensure that our accruals are still appropriate. In certain circumstances, accruals are no longer required because of efficiencies in carrying out our initiative or because employees previously identified for separation resigned unexpectedly and did not receive severance or were redeployed due to circumstances not foreseen when the original plans were initiated. We reverse accruals to operational restructuring expense when it is determined they are no longer required.

The following table displays the activity from December 31, 2010 to March 31, 2011 of our costs related to our operational restructuring initiatives:


			Three months ended March 31, 2011								As of March 31, 2011
	Balance, December 31, 2010		Charges to Expense			Cash Payments			Non-Cash adjustments		Total costs and adjustments			Total expected costs & adjustments
(amounts in thousands) (unaudited)
Printing Segment
Severance and other benefits		24		—			—			—		—			4
Site clean-up costs	$	10	$	—		$	—		$	—	$	—		$	10

Subtotal Printing Segment		34		—			—			—		—			34

Industrial Segment
Severance and other benefits		1,912		(120	)		(1,121	)		64		(1,177	)		735
Other		442		(61	)		(44	)		24		(81	)		361

Subtotal Industrial Segment		2,354		(181	)		(1,165	)		88		(1,258	)		1,096

Total	$	2,388	$	(181	)	$	(1,165	)	$	88	$	(1,258	)	$	1,130

The $1.2 million of cash payments set forth above reflects cash payments made to employees separated as part of our operational restructuring programs from 2010. As of March 31, 2011, we had accrued operational restructuring costs of $1.1 million that are anticipated to be paid out by December 31, 2011.

Liquidity and Capital Resources

Our primary source of liquidity is cash generated from operations. Our primary uses of cash are raw material purchases, salary expense, capital expenditures and debt service obligations. We believe that our cash and cash equivalent balance and cash generated from operations will be sufficient to meet our working capital needs, capital expenditures and other business requirements for at least the next twelve months. At March 31, 2011, we had $88.5 million in cash and cash equivalents.

Although we have not historically done so, if appropriate, we may borrow cash under our Revolving Credit Facility. At March 31, 2011, we had approximately $46.0 million of availability under our Revolving Credit Facility. While we believe we have sufficient liquidity and capital resources to meet our current operating requirements, if our cash flows from operations are less than we expect or if we require funds to pursue additional expansion activities that we may elect to pursue, we may need to incur additional debt, issue additional equity securities or sell or monetize existing assets. We cannot, however, assure you that future funding will be available on terms favorable to us or at all. The restrictions in our existing debt instruments may also limit our ability to incur additional debt or sell assets.

Of the $88.5 million of cash and cash equivalents at March 31, 2011, $33.1 million was held by our foreign subsidiaries. Repatriation of some of these funds could be subject to delay and could have potential tax consequences, principally with respect to withholding taxes paid in foreign jurisdictions.

As market conditions warrant, we may from time to time repurchase debt securities issued by us in privately negotiated or open-market transactions, by tender offer or otherwise, or issue new debt in order to refinance or prepay amounts outstanding under the Credit Facilities or the Senior Subordinated Notes or for other permitted purposes.

Operating Activities

We generated cash flows from operating activities of $9.9 million for the three months ended March 31, 2011, compared to $28.7 million for the same period in 2010. The decrease in cash flow provided by operations,

for the three months ended March 31, 2011 was primarily attributable to a $26.2 million increase in mark-to-market charges on foreign denominated debt and a $24.8 million decrease in our assets and liabilities balance caused by higher sales levels in the first quarter of 2011 compared to the same period in 2010.

We generated cash flows from continuing operating activities of $56.1 million for the year ended December 31, 2010 compared to $48.4 million for the same period in 2009. The increase in cash flow provided by operations for the year ended December 31, 2010 as compared to the same period in 2009 was primarily attributable to a $106.8 million increase in net income from 2010 compared to 2009, a $29.4 million increase in deferred income tax balances, a $68.7 million decrease to impairment charges recorded in 2009 and a $22.5 million decrease in mark-to-market charges on foreign denominated debt.

We generated cash flows from continuing operating activities of $48.4 million for the year ended December 31, 2009 compared to $8.5 million for the same period in 2008. The increase in cash flow provided by operations for the year ended December 31, 2009 as compared to the same period in 2008 was primarily attributable to a higher net loss of $(46.7) for 2009 compared to 2008, an increase in impairment charges of $52.4 million for 2009 compared to 2008, a decrease of $(16.5) in deferred income tax balances for 2009 compared to 2008, a $6.8 million change in discontinued operations for 2009 compared to 2008 and a $45.4 million change in asset and liability balances for 2009 compared to 2008.

Investing Activities

Our net cash flows (used in) investing activities for the three months ended March 31, 2011 was $(1.5) million compared to $(3.2) million for the same period in 2010. The decrease of $1.7 million was attributable to higher capital expenditures during the first quarter of 2011 of $0.8 million offset by a certificate of deposit purchase of $2.5 million during the first quarter of 2010.

Our net cash flows (used in) investing activities for the year ended December 31, 2010 was $(8.9) million compared to $(3.9) million for the same period in 2009. The increase of $5.0 million was attributable to higher capital expenditures of $1.0 million for the year ended December 31, 2010 compared to the same period in 2009, lower proceeds received from assets sales of $1.5 million for the year ended 2010 compared to the same period in 2009 and a certificate of deposit purchase of $2.5 million during the year ended December 31, 2010.

Our net cash flows (used in) provided by investing activities for the year ended December 31, 2009 was $(3.9) million compared to $55.9 million for the same period in 2008. The increase of $59.8 million in cash flows (used in) investing activities was attributable to lower capital expenditures of $3.7 million for the year ended December 31, 2009 compared to the same period in 2008, higher proceeds received from assets sales of $0.6 million for the year ended 2009 compared to the same period in 2008, proceeds from the Offset sale in 2008 of $(67.4) million, $2.2 million additions to goodwill and other assets in 2008 and $1.1 million purchase of equity securities in for the year ended 2008 not present for the same period in 2009.

Financing Activities

Our net cash flows (used in) financing activities for the three months ended March 31, 2011 was $(26.9) million compared to $(18.7) million for the same period in 2010. The increase in net cash flows (used in) financing activities of $8.2 million was due to higher payments of long-term debt during the first quarter of 2011 of $9.0 million compared to the same period in 2010. The increase in long-term debt payments was due to a $24.2 million mandatory excess cash flow payment based upon our 2010 operating results made during the first quarter 2011, compared to a $15.7 million mandatory excess cash flow payment based upon our 2009 operating results made during the same time period in 2010.

Our net cash flows (used in) financing activities for the year ended December 31, 2010 was $(26.6) million compared to $(54.4) million for the same period in 2009. The decrease in net cash flows (used in) financing

activities of $27.7 million was due to higher payments of long-term debt during the year ended December 31, 2009, of $34.1 million compared to the same period in 2010. Our payments of long-term debt for the year ended December 31, 2010 included a $15.7 million mandatory excess cash flow payment based upon our 2009 operating results, compared to a $8.6 million mandatory excess cash flow payment made during the year ended December 31, 2009, based upon our 2008 operating results. During the year ended December 31, 2009, we also made a debt payment on our long-term debt of $33.0 million related to the sale of our Offset business which was finalized in May 2009. During the year ended December 31, 2010 our payments of our Japanese Yen denominated debt was $5.7 million compared to $12.6 million for the same period in 2009. During the year ended December 31, 2009, one of our Japanese business units borrowed $6.8 million of long-term debt denominated in Japanese Yen. There were not any similar borrowings for the year ended December 31, 2010.

Our net cash flows (used in) financing activities for the year ended December 31, 2009 was $(54.4) million compared to $(29.9) million for the same period in 2008. The increase in net cash flows (used in) financing activities of $24.4 million was due to higher payments of long-term debt during the year ended 2009, of $34.3 million compared to the same period in 2008. Our payments of long-term debt for the year ended December 31, 2009 included a $8.6 million mandatory excess cash flow payment made during the year ended December 31, 2009 based upon our 2008 operating results, compared to a mandatory excess cash payment of $14.5 million made during the year ended December 31, 2008 based upon our 2007 operating results. During the year ended December 31, 2009, we also made a debt payment on our long-term debt of $33.0 million related to the sale of our Offset business which was finalized in May 2009. During the year ended December 31, 2009 our payments of our Japanese Yen denominated debt was $12.6 million compared to $5.3 million for the same period in 2008. During the year ended December 31, 2009, one of our Japanese business units borrowed $6.8 million of long-term debt denominated in Japanese Yen. There were not any similar borrowings for the year ended December 31, 2008. During the year ended December 31, 2008, we made payments of $2.5 million related to financing fees of credit facilities established in connection with the Acquisition.

Credit Facilities, Japanese Debt and Senior Subordinated Notes

As of March 31, 2011, the Credit Facilities consist of (1) a $360.0 million tranche B term loan credit facility denominated in U.S. Dollars (the “Tranche B Facility”), (2) a $250.0 million tranche C term loan credit facility denominated in Euros (the “Tranche C Facility”), and (3) a $50.0 million Revolving Credit Facility denominated in U.S. Dollars. A portion of the Revolving Credit Facility not in excess of $15.0 million is available for the issuance of letters of credit, and a portion of the Revolving Credit Facility not in excess of $10.0 million is available for swing line loans. Separate and apart from the Credit Facilities, we also had Japanese senior secured bank debt denominated in Japanese Yen.

As of March 31, 2011, we had $350.0 million of Senior Subordinated Notes outstanding; $232.7 million of indebtedness outstanding under the Tranche B Facility, $169.6 million of indebtedness outstanding under the Tranche C Facility and $13.6 million of Japanese debt. During the years ended December 31, 2010, 2009 and 2008 and the quarter ended March 31, 2011, there were no borrowings under our $50.0 million Revolving Credit Facility. We had letters of credit outstanding of $4.0 million at March 31, 2011. The letters of credit reduce the borrowings available under the Revolving Credit Facility. Assuming that the amount of net proceeds that we receive from this offering is $ and after giving effect to our intended use of proceeds as described in “Use of Proceeds”, as of March 31, 2011, we would have had approximately $ million of total indebtedness outstanding, including $350.0 million of Senior Subordinated Notes outstanding, $ million of indebtedness outstanding under the Tranche B Facility, $ million of indebtedness outstanding under the Tranche C Facility and $13.6 million of Japanese debt.

The borrower under the Credit Facilities and the issuer of the Senior Subordinated Notes is MacDermid, Incorporated. Upon consummation of this offering, MacDermid Group, Inc. and certain of its indirect wholly owned domestic subsidiaries will unconditionally guarantee all obligations under the Credit Facilities and certain of the direct and indirect wholly owned subsidiaries of MacDermid, Incorporated will unconditionally guarantee all

obligations under the Senior Subordinated Notes, in each case, subject to customary exceptions, exclusions and release mechanisms. Each of the notes representing our Japanese debt is secured by the assets of MacDermid Japan.

The Credit Facilities and the Senior Subordinated Notes contain various covenants including limitations on additional indebtedness, dividends and other distributions, entry into new lines of business, use of loan proceeds, capital expenditures, restricted payments, restrictions on liens, transactions with affiliates, amendments to organizational documents, accounting changes, sale and leaseback transactions and dispositions. In addition, the Revolving Credit Facility requires us to comply with certain financial covenants, including consolidated leverage and interest coverage ratios and limitations on capital expenditures if our funding under the Revolving Credit Facility exceeds $10.0 million for ten or more consecutive days in any fiscal quarter. As of March 31, 2011 and December 31, 2010, we were in compliance with the debt covenants contained in the Credit Facilities and the Senior Subordinated Notes.

For additional information about our Credit Facilities, Senior Subordinated Notes and Japanese debt, please see “Description of Certain Indebtedness of MacDermid, Incorporated”.

Other debt facilities

We carry various short-term debt facilities worldwide which are used to fund short-term cash needs as the need arises. As of March 31, 2011 and December 31, 2010, there was $1.8 million and $1.3 million, respectively, outstanding under these other debt facilities. We also have various overdraft facilities available. At March 31, 2011 and December 31, 2010, the capacity under these overdraft facilities was $22.8 million and $21.9 million, respectively. As of March 31, 2011, these overdraft lines bore interest rates ranging from 1.0% to 11%.

Hedging Transactions

In June 2007, we entered into an interest rate swap agreement (the “swap”) to hedge interest rate fluctuations under the Tranche B Facility. The swap helped mitigate interest rate fluctuations on our floating rate U.S. Dollar denominated debt. The swap was at a fixed rate of 5.40%, a notional amount of $170.0 million and matured on June 30, 2010. We also entered into an interest rate collar agreement (the “collar”) in June 2007. The collar helps protect our floating rate U.S. Dollar denominated debt. The collar has a floor of 5.20% and a ceiling of 6.25%, a notional amount of $100.0 million and covers the period from June 30, 2010 through June 30, 2012.

We conduct a significant portion of our business in currencies other than the U.S. Dollar, the currency in which the consolidated financial statements are reported. Correspondingly, our operating results could be affected by foreign currency exchange rate volatility relative to the U.S. Dollar. One of our business units in the United Kingdom uses the British Pound Sterling as its functional currency for paying labor and other operating costs, while approximately 25% of its revenues are denominated in U.S. Dollars. To hedge against the risk of a stronger British Pound Sterling, we contracted in 2010 and 2009, on behalf of our foreign business unit, with a financial institution to deliver U.S. Dollars at a fixed British Pound Sterling rate and to receive British Pound Sterling in exchange for the U.S. Dollar. We did not pay up-front premiums to obtain the hedge.

The following table summarizes derivative instrument amounts as of March 31, 2011, by currency and the portion of the asset that settles within the next twelve months related to foreign currency derivatives.


	Local Currency Amount		U.S. Dollar Amount		Percentage Settled Within One Year			Settlement Date
Derivative Assets (amounts in thousands)

British Pound Sterling		£3,991	$	6,000		100	%		June 30, 2011
British Pound Sterling		£3,778	$	6,000		100	%		September 30, 2011
British Pound Sterling		£1,933	$	3,000		100	%		December 31, 2011

			$	15,000

Fair Value

The following table presents the carrying value and estimated fair value of our Tranche B Facility, Tranche C Facility and the Senior Subordinated Notes:


	March 31, 2011				December 31, 2010
(amounts in thousands)	Carrying value		Fair Value		Carrying value		Fair Value
Tranche B Facility, Tranche C Facility and Senior Subordinated Notes debt including current portion	$	752,267	$	765,997	$	767,827	$	764,287

The fair value was determined based upon quoted market prices. Since considerable judgment is required in interpreting market information, the fair value of the Tranche B Facility, Tranche C Facility and the Senior Subordinated Notes indebtedness is not necessarily the amount which could be realized in a current market exchange.

Contractual Obligations

We own most of our major manufacturing facilities, but we do lease certain office, manufacturing factories and warehouse space and land, as well as other equipment primarily under non-cancelable operating leases.

Summarized in the table below are our obligations and commitments to make future payments in connection with our debt and minimum lease payment obligations (net of minimum sublease income) as of December 31, 2010. Actual amounts are as of December 31, 2010 without giving effect to the use of proceeds from this offering. As adjusted amounts are as of December 31, 2010 after giving effect to our intended use of proceeds as described in “Use of Proceeds”.


(amounts in thousands)	Payments Due by Period
(amounts in thousands)	2011			2012			2013			2014			2015			2015 and Thereafter			Total
	(Actual)		(As adjusted)	(Actual)		(As adjusted)	(Actual)		(As adjusted)	(Actual)		(As adjusted)	(Actual)		(As adjusted)	(Actual)		(As adjusted)	(Actual)		(As adjusted)
Debt obligations (including short-term debt) (1)	$	37,657	$	$	10,830	$	$	9,598	$	$	376,407	$	$	—	$	$	350,000	$	$	748,492	$
Capital lease obligations (2)		41			43			36			—			—			—			120
Operating leases (3)		9,158			6,970			4,381			3,315			2,762			28,710			55,296
Interest payments (4)		48,488			45,715			43,714			34,871			33,250			42,542			248,580

Total cash contractual obligations	$	95,344	$	$	63,558	$	$	57,729	$	$	414,593	$	$	36,012	$	$	421,252	$	$	1,088,488	$

(1)

Reflects the principal payments on the Credit Facilities and the Senior Subordinated Notes and Japanese debt. December 31, 2010 exchange rates were utilized to estimate U.S. Dollar payments for Tranche C Facility debt and Japanese debt interest payments. 2011 amounts include excess cash flow payments made in March 2011 on debt under the Tranche B Facility and the Tranche C Facility.

(2)	Excludes interest on capital lease obligations of $0.1 million at December 31, 2010.

(3)	Amounts are net of sublease income on operating leases of approximately $1.5 million in 2011, $1.6 million in 2012, $1.6 million in 2013 and $1.7 million in 2014.

(4)

Amounts are based on currently applicable interest rates in the case of variable interest rate debt. December 31, 2010 exchange rates were utilized to estimate U.S. Dollar payments for Tranche C Facility debt and Japanese debt interest payments. The amounts also include estimated payments required under an interest rate collar agreement, which expires in 2012.

As of December 31, 2010, we had reserves of $22.5 million recorded for uncertain tax positions, including interest and penalties. We do not include this amount in our long-term contractual obligations table because of the difficulty in making reasonably reliable estimates of the timing of cash settlements, if any, with the respective taxing authorities.

Capital Expenditures

We expect to spend approximately $12.0 million over the course of 2011 for capital expenditures, and $1.1 million from March 31, 2011 through the remainder of 2011 related to our operational restructuring programs.

Off-Balance Sheet Arrangements

We use customary off-balance sheet arrangements, such as operating leases and letters of credit, to finance our business. None of these arrangements has or is reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Significant Accounting Policies and Critical Estimates

The preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of net sales and expenses during the reporting period.

Our management must undertake decisions that impact the reported amounts and related disclosures. Such decisions include the selection of the appropriate accounting principles to be applied and also assumptions upon which accounting estimates are based. The company applies judgment based on its understanding and analysis of the relevant circumstances to reach these decisions. By their nature, these judgments are subject to an inherent degree of uncertainty. Accordingly, actual results could differ significantly from the estimates applied. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; allowances for doubtful accounts and sales returns, deferred tax assets, inventory, inventory valuation, share-based compensation, reserves for employee benefit obligations, environmental liabilities, income tax uncertainties and other contingencies.

Our management believes the following accounting policies to be those most important to the portrayal of our financial condition and those that require the most subjective judgment:

•

valuation of long-lived assets;

•

operational restructuring activities;

•

accounting for income taxes;

•

inventory valuation methodology;

•

product sales and revenue recognition;

•

purchase accounting, goodwill and intangible assets; and

•

employee benefits and pension obligations.

If actual results differ significantly from management’s estimates and projections, there could be a material negative impact on our financial statements.

Valuation of Long-Lived Assets

The net book values of our tangible and intangible long-lived assets at March 31, 2011, December 31, 2010 and December 31, 2009 were as follows:


	As of
(amounts in thousands)	March 31, 2011		December 31, 2010		December 31, 2009
Property, plant and equipment	$	104,794	$	105,371	$	116,988
Goodwill		481,594		477,483		466,923
Intangibles		343,404		349,569		375,004

Total Net Book Value	$	929,792	$	932,423	$	958,915

We assess the impairment of long-lived assets, which include goodwill, indefinite-lived purchased intangible assets, finite-lived purchased intangible assets and PP&E, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. During the year ended December 31, 2009, we concluded that indicators of impairment existed related to our goodwill, indefinite-lived purchased intangible assets and PP&E. During the year ended December 31, 2008, we concluded that indicators of impairment existed related to our goodwill. The impairment charges we took related to these indicators of impairment are discussed below.

Identifiable Intangible Assets

Indefinite-lived intangible assets are reviewed for potential impairment on an annual basis by comparing the estimated fair value of the indefinite-lived purchased intangible assets to the carrying value. Our annual test for goodwill impairment has historically been performed as of April 1st of each year. We have completed the testing as of April 1, 2011 and, in connection with this offering, we have changed the date of our annual impairment testing going forward to November 1st. The estimated fair value of these intangible assets is determined using the “relief from royalty” approach. An impairment charge is recognized when the estimated fair value of an indefinite-lived intangible asset is less than the carrying value.

Finite-lived intangible assets such as developed technology and customer lists are amortized on a straight-line basis over their estimated useful lives, which are currently ten years for developed technology and range between three and 21 years for customer lists. If circumstances require a long-lived asset group to be tested for possible impairment, we first determine whether the estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment is identified, the carrying amount of the asset is reduced to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, based on comparable market values.

During 2009, we recorded an impairment charge related to our indefinite-lived purchased intangible assets based upon our annual impairment review. We hired an independent valuation firm to assist management with determining the fair value of the indefinite-lived purchased intangible assets. Our management concluded that the estimated direct cash flows associated with the applicable intangible assets using a “relief from royalty” methodology associated with revenues projected to be generated from these intangible assets were less than the carrying value of the intangible assets. This analysis indicated that a certain tradename was impaired by $26.1 million, therefore we recorded an impairment charge of $26.1 million related to this tradename during 2009. The primary driver of the impairment charge recorded in 2009 related to our indefinite-lived purchased intangible asset was lower sales levels because of the global economic recession and therefore lower profitability. This global economic recession resulted in weakening conditions in the automotive, industrial, and electronic markets we serve. During 2009, we also recorded an impairment charge of $0.2 million related to customer list intangible assets in our Industrial segment because of the loss of sales to outside customers.

During the years ended December 31, 2010 and 2008 and the three months ended March 31, 2011 and 2010, we did not record any impairment charges related to indefinite-lived purchased intangible assets or any identifiable intangible assets.

We determine the fair value of our intangible assets in accordance with ASC Topic 820, “Fair Value Measurements and Disclosures”. Our impairment evaluation of identifiable intangible assets and property, plants and equipment includes an analysis of estimated future undiscounted net cash flows expected to be generated by the assets over their remaining estimated useful lives. If the estimated future undiscounted net cash flows are insufficient to recover the carrying value of the assets over the remaining estimated useful lives, we record an impairment charge in the amount by which the carrying value of the assets exceeds the fair value. We determine fair value based on either market quotes, if available, or discounted cash flows using a discount rate commensurate with the risk inherent in our current business model for the specific asset being valued.

When applying the “relief from royalty” method, the cash flows expected to be generated by the intangible asset are discounted to their present value equivalent using an appropriate weighted average cost of capital (“WACC”) for the respective asset being valued. The WACC we utilize is prepared by an outside valuation experts based upon our industry average.

The valuations of our customer lists and developed technology intangible assets are based on undiscounted cash flows, which incorporates our long-term net sales projections as a key assumption. The long-term net sales projections utilized in the valuation of our customer lists and developed technology intangible assets are based upon current customers, new strategic products and potential sales growth based on historical experience and current expectations. The undiscounted net cash flows expected to be generated by the customer lists and developed technology intangible assets are then compared to their respective carry values to determine if impairment exists.

We use the “relief from royalty” method to value the tradename intangible asset. Our net sales projection is a key assumption. We apply a royalty rate to the projected net sales. The royalty rate is based on market royalty rates and royalties we pay to outside parties. The resulting royalty savings are reduced by income taxes resulting from the annual royalty savings at a market participant corporate income tax rate to arrive at the after-tax royalty savings associated with owning the tradenames. Finally, the present value of the estimated annual after-tax royalty savings for each year is used to estimate the fair value of the tradenames.

The primary assumptions in each of these calculations are net sales, growth rates and the WACC utilized to discount the resulting cash flows. Our assumptions concerning net sales are impacted by global and local economic conditions in the various markets we serve.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets of an acquired business. Goodwill is tested for impairment at the operations level annually, or when events or changes in circumstances indicate that goodwill might be impaired. For goodwill, a two-step impairment test is performed at the operations level. In the first step of impairment testing, the fair value of each of our operations is compared to its carrying value. The fair value of each of our operations is determined based on the present value of estimated discounted future cash flows. If the fair value of an operation exceeds the carrying value of the net assets assigned to that operation, goodwill is not impaired and no further testing is performed. If the carrying value of the net assets assigned to that operation exceeds the fair value of that operation, then the second step of the impairment test must be performed to determine the implied fair value of the operation’s goodwill. If the carrying value of the operation’s goodwill exceeds its implied fair value, an impairment charge is recorded equal to the difference. Our annual test for goodwill impairment has historically been performed as of April 1st of each year. We have completed the testing as of April 1, 2011 and, in connection with this offering, we have changed the date of our annual impairment testing going forward to November 1st.

During 2009, we recorded an impairment charge related to goodwill based upon our annual impairment review. The first step of the impairment testing indicated that the carrying values of the Industrial Americas and Asia operations exceeded their fair values as of the testing date. We determined the fair values of our operations utilizing a discounted cash flow model. The cash flow model utilized in the goodwill impairment test involves significant judgments related to future growth rates, discount rates and tax rates, among other considerations. Because the first step indicated a potential impairment, we performed the second step as required by comparing the implied value of the goodwill as calculated in a hypothetical purchase transaction to the book value of the goodwill as of the testing date. The second step of the impairment testing indicated that the book values of the Industrial Americas and Asia operations’ goodwill exceeded the implied fair values of that goodwill. The implied fair values were determined by reviewing the current assets and liabilities; property, plant and equipment; and other identifiable intangible assets (both those recorded and not recorded) to determine the appropriate fair values of the operations’ assets and liabilities in a hypothetical purchase transaction. We utilized a report prepared by an independent valuation expert to assist management in determining the fair values of the Industrial segment land, building and intangible assets balances to utilize in step two of the goodwill impairment test. The fair values of the Industrial segment’s assets and liabilities were then compared to the book values of the Industrial segment’s assets and liabilities to determine an implied value of the operations’ goodwill.

As a result, impairment charges of approximately $14.6 million and $26.6 million, respectively, were recorded for the Industrial segment’s goodwill during 2009. The primary driver of the impairment charges recorded in 2009 was lower sales levels because of the global economic recession and therefore lower profitability in our Industrial segment. This global economic recession resulted in weakening conditions in the automotive, industrial, and electronic markets we serve. During the year ended December 31, 2008, we recorded a goodwill impairment charge of $16.3 million in our Industrial segment operations due to lower discounted cash flows related to lower net sales and future expected sales related to a specific product for a global business unit in our Industrial segment. During the year ended December 31, 2010 and the three months ended March 31, 2011, we did not record any goodwill impairment charges. As of April 1, 2011, based upon our goodwill impairment testing analysis, no goodwill impairment charges were recorded.

Property, Plant and Equipment

We evaluate property, plant and equipment (“PP&E”) for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. If circumstances require a long-lived asset group to be tested for possible impairment, we first determine whether the estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment is identified, the carrying amount of the asset is reduced to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, based on comparable market values. Major factors that influence our cash flow analysis are our estimates for future net sales and expenses associated with the use of the asset. Different estimates could have a significant impact on the results of our evaluation. If, as a result of our analysis, we determine that our PP&E has been impaired, we will recognize an impairment charge in the period in which the impairment is determined. Any such impairment charge could be significant and could have a material negative effect on our results of operations.

During 2009, the carrying value of equipment at a certain business unit in our Printing Americas operations was evaluated due to softening business conditions. This evaluation indicated that the carrying values of certain equipment were not recoverable, as the expected undiscounted future cash flows to be generated by them were less than their carrying values. The related impairment charge was measured based on the amount by which the asset carrying values exceeded fair value. The asset fair value was based on estimates of prices for similar assets. As a result of the above evaluation, we recorded a $1.2 million asset impairment charge in 2009. During the years ended December 31, 2010 and 2008, and the three months ended March 31, 2011, we did not record any PP&E impairment charges, other than amounts recorded in connection with operational restructuring, which are discussed below. During the years ended December 31, 2010, 2009 and 2008, we recorded various non-cash asset

impairment charges for PP&E of $2.4 million, $1.2 million and $6.8 million, respectively, in impairment and operational restructuring expense. During the three months ended March 31, 2011, we did not record any impairment charges related to our PP&E.

Continued pressure on our forecasted product shipments in the future due to the current global macroeconomic environment, loss of one or more significant customers, loss of market share, rising raw material prices or lack of growth in the industries into which our products are sold or an inability to ensure our cost structure is aligned to associated decreases in net sales could result in further impairment charges. If, as a result of our analysis, we determine that our goodwill, indefinite lived intangible assets, identifiable intangible assets or other long-lived assets have been impaired, we will recognize an impairment charge in the period in which the impairment is determined. As of April 1, 2011 (the date of our 2011 annual impairment test) and December 31, 2010, we determined that no further indicators of impairment existed with regard to our goodwill, intangible assets and PP&E balances.

Operational Restructuring Activities

Accounting for Income Taxes

We recognize deferred tax assets and liabilities based on the differences between the financial statement bases and the tax bases of assets, liabilities, net operating losses and tax credit carry-forwards. A valuation allowance is required to be recognized to reduce the recorded deferred tax asset to the amount that will more likely than not be realized.

In assessing whether deferred tax assets will be realized, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income, tax planning strategies and expiration dates of certain deferred tax assets in making this assessment.

Valuation allowances of $27.9 million have been recorded as of December 31, 2010. The valuation allowances reflect our assessment that it is more likely than not that certain deferred tax assets for state and foreign net operating losses, foreign tax credits, research and development credits and state tax credit carry-forwards will not be realized.

We have reserved for taxes, interest and penalties that may become due in future years as a result of audit assessments by the tax authorities. Although we believe that the positions reflected on the filed tax returns are supported, we still have established reserves recognizing that the tax authorities may challenge certain positions, which then may not be fully sustained. We review the tax positions on a quarterly basis and update and adjust the reserves taking into account lapses of statutes of limitations, proposed tax assessments from the tax authorities, settlement of tax audits with the tax authorities, identification of new issues as they arise and the issuance of any new tax regulations, laws or judicial settlements that may impact the tax reserves.

We consider many factors when estimating and evaluating tax positions and tax benefits. The first step in evaluating the tax position for recognition is to determine the amount of evidence that supports a favorable conclusion for the tax position upon audit. In order to recognize the tax position, we must determine whether it is more likely than not that the position is sustainable. The next requirement is to measure the tax benefit as the largest amount that has a more than 50% chance of being realized upon final settlement. The more likely than not recognition threshold is a matter of judgment based on the facts and circumstances of each individual issue. As of December 31, 2010, we had reserves of approximately $22.5 million for taxes, interest and penalties that may become due in later years as a result of future tax audits.

Inventory Valuation Methodology

Inventories are stated at the lower of average cost or market. We regularly review inventories for obsolescence and calculate a reserve based on historical write-offs, customer demand, product evolution, usage rates and quantities of stock on hand. Inventory in excess of estimated usage requirements is written down to its estimated net realizable value.

As of March 31, 2011 and December 31, 2010 and 2009, we had inventory reserve balances of $10.6 million, $10.1 million and $10.7 million, respectively, for obsolete, damaged and slow moving inventory. If actual future demand or market conditions are less favorable than those projected by our management, additional inventory reserves or inventory write-downs may be required.

Product Sales and Revenue Recognition

We recognize revenue, including freight charged to customers, when the earnings process is complete. This occurs when products are shipped to or received by the customer in accordance with the terms of the agreement, title and risk of loss have been transferred, collectability is probable and pricing is fixed or determinable. Shipping terms are customarily “FOB shipping point” and do not include right of inspection or acceptance provisions. Equipment sales arrangements may include right of inspection or acceptance provisions, in which case revenue is deferred until these provisions are satisfied.

We also occasionally sell equipment to some of our customers to use with our products. These equipment sales can also be linked with other purchase agreements and could represent multiple element arrangements under ASC Topic 605, “Revenue Recognition” or contain future performance provisions pursuant to SEC Staff Accounting Bulletin 104, “Revenue Recognition”. The process of determining the appropriate revenue recognition in such transactions is highly complex and requires significant judgments and estimates.

Purchase Accounting, Goodwill and Intangible Assets

In connection with the Acquisition, MacDermid, Incorporated incurred significant indebtedness under our Credit Facilities and the Senior Subordinated Notes. The purchase price paid in connection with the Acquisition was allocated to state the acquired assets and assumed liabilities at fair value. The purchase accounting adjustments (1) increased the carrying value of our property, plant and equipment, (2) established intangible assets for our tradenames, customer lists and developed technology and (3) established goodwill related to the difference between the purchase price and the fair value of the assets and liabilities as of the Acquisition date. Subsequent to the Acquisition, interest expense and non-cash depreciation and amortization charges significantly increased. During 2008, we incurred a non-cash impairment charge of $16.3 million to reduce the goodwill assets established at the time of the Acquisition. During 2009, we incurred non-cash impairment charges of $68.7 million to reduce the goodwill assets, customer lists, tradename and equipment assets established at the time of the Acquisition.

The Acquisition resulted in us having an entirely new, and significantly different, capital structure. Subsequent to the Acquisition date of April 12, 2007, we recorded purchase adjustments related to our balances

of land, buildings, equipment, goodwill and intangible assets. We retained an outside valuation firm to assist management with determining the fair value of our tangible assets and liabilities and intangible assets. The outside valuation firm finalized their review of our tangible assets and liabilities and intangible assets in 2007. We have recorded all assets acquired and liabilities assumed at their respective fair value as of April 13, 2007. We completed the accounting for the goodwill allocation in 2008.

The estimated fair values and useful lives of identified intangible assets are based on many factors, including estimates and assumptions of future operating performance and cash flows of the acquired business, estimates of cost avoidance, the nature of the business acquired, the specific characteristics of the identified intangible assets and our historical experience and that of the acquired business. The estimates and assumptions used to determine the fair values and useful lives of identified intangible assets could change due to numerous factors, including product demand, market conditions, regulations affecting the business model of our operations, technological developments, economic conditions and competition. The carrying values and useful lives for amortization of identified intangible assets are reviewed on an ongoing basis, and any resulting changes in estimates could have a material negative impact on our financial results.

Employee Benefits and Pension Obligations

We sponsor a variety of employee benefit programs, some of which are non-contributory. The accounting policies used to account for these plans are as follows:

Retirement—We provide non-contributory defined benefit plans to domestic and certain foreign employees. The projected unit credit actuarial method is used for financial reporting purposes. We recognize the funded status; the difference between the fair value of the plan assets and the projected benefit obligation (pension plans) or the accumulated postretirement benefit obligation (other postretirement plan) in our consolidated balance sheet. Our funding policy for qualified plans is consistent with federal or other local regulations and customarily equals the amount deductible for federal and local income tax purposes. Foreign subsidiaries contribute to other plans, which may be administered privately or by government agencies in accordance with local regulations. We also provide a defined contribution 401(k) retirement plan for substantially all domestic employees. We may make discretionary contributions to the 401(k) plan, but there were no discretionary contributions made to the 401(k) plan during the years ended December 31, 2010, 2009 and 2008 and the three months ended March 31, 2011 and 2010.

Post-retirement—We currently accrue for post-retirement health care benefits for U.S. employees hired prior to April 1, 1997. The post-retirement health care plan is unfunded.

Post-employment—MacDermid, Incorporated currently accrues for post-employment disability benefits to United Kingdom employees meeting specified service requirements. The post-employment benefits plan is unfunded.

The actuarial determination of the projected benefit obligations and related benefit expense requires that certain assumptions be made regarding such variables as expected return on plan assets, discount rates, rates of future compensation increases, estimated future employee turnover rates and retirement dates, distribution election rates, mortality rates, retiree utilization rates for health care services and health care cost trend rates. The selection of assumptions requires considerable judgment concerning future events and has a significant impact on the amount of the obligations recorded in the consolidated balance sheets and on the amount of expense included in the consolidated statements of operations.

Recent Accounting Pronouncements and Legislation Changes

On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act (the “PPAC Act”), which is a comprehensive health care reform bill for the United States. In addition, on March 30, 2010, President Obama signed into law the reconciliation measure (“Heath Care and Education Reconciliation

Act of 2010”), which modifies certain provisions of the PPAC Act. Although the new legislation did not have an impact on our consolidated financial position, results of operation or cash flows in 2010, we are continuing to assess the potential impacts on our future obligations, costs, and cash flows related to our health care benefits and post-retirement health-care obligations.

In April 2010, the FASB issued ASU No. 2010-17, “Revenue Recognition (ASC Topic 605): Milestone Method” (“ASU No. 2010-17”). ASU No. 2010-17 recognizes the milestone method as an acceptable revenue recognition method for substantive milestones in research or development transactions. A milestone is substantive when the consideration earned from achievement of the milestone is commensurate with either (1) the vendor’s performance to achieve the milestone or (2) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the vendor’s performance to achieve the milestone and the consideration earned from the achievement of a milestone relates solely to past performance and is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. This new guidance will be effective for our fiscal year 2011 and its interim periods, with early adoption permitted. This guidance did not have a material impact on our consolidated financial position, results of operations or cash flows.

In January 2010, the FASB issued ASU No. 2010-06, “Fair Value Measurements and Disclosures (Topic 820)—Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”). ASU 2010-06 requires new disclosures regarding significant transfers in and out of Levels 1 and 2, as well as information about activity in Level 3 fair value measurements, including presenting information about purchases, sales, issuances and settlements on a gross versus a net basis in the Level 3 activity roll forward. In addition, ASU 2010-06 clarifies existing disclosures regarding input and valuation techniques, as well as the level of disaggregation for each class of assets and liabilities. ASU No. 2010-06 is effective for interim and annual periods beginning after December 15, 2009, except for the disclosures pertaining to purchases, sales, issuances and settlements in the roll forward of Level 3 activity; those disclosures are effective for interim and annual periods beginning after December 15, 2010. The adoption of ASU 2010-06 had no impact and is expected to have no subsequent impact on our consolidated financial position, results of operations or cash flows.

In October 2009, the FASB issued ASU No. 2009-13 “Revenue Recognition (ASC Topic 605): Multiple-Deliverable Revenue Arrangements” (“ASU No. 2009-13”). ASU No. 2009-13 addresses how to determine whether an arrangement involving multiple deliverables contains more than one unit of accounting and how the arrangement consideration should be allocated among the separate units of accounting. ASU No. 2009-13 is effective for fiscal years beginning on or after June 15, 2010 with early adoption permitted. The guidance may be applied retrospectively or prospectively for new or materially modified arrangements. We elected to early adopt this guidance, on a prospective basis for applicable transactions originating or materially modified after January 1, 2010. The adoption of this update did not have a material effect on our consolidated financial position, results of operations or cash flows.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Grant Thornton LLP (“Grant Thornton”) served as MacDermid, Incorporated’s independent registered public accounting firm since April 6, 2006, auditing its financial statements for each fiscal year ending since that time, through and including the fiscal year ended December 31, 2008. Subsequent to the audit of MacDermid, Incorporated’s financial statements for the fiscal year ended December 31, 2008, the board of directors of MacDermid, Incorporated sought competitive proposals for audit services from a group of independent registered public accounting firms. As a result of this process, the board of directors of MacDermid, Incorporated dismissed Grant Thornton as its independent registered public accounting firm and approved the engagement of KPMG LLP (“KPMG”) as the independent registered public accounting firm for MacDermid Holdings, LLC, the parent entity of MacDermid, Incorporated. On October 27, 2009, the board of MacDermid Holdings, LLC engaged KPMG to audit its financial statements for the fiscal year ended December 31, 2009.

For the fiscal year ended December 31, 2008, Grant Thornton’s report on MacDermid, Incorporated’s consolidated financial statements did not contain an adverse opinion or a disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope or accounting principles. During the fiscal year ended December 31, 2008, and through the date hereof, there have been no reportable events described in Item 304(a)(1)(v) of Regulation S-K, as promulgated by the SEC. Additionally, there were no disagreements with Grant Thornton on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Grant Thornton, would have caused Grant Thornton to make reference thereto in its report on our financial statements for the fiscal year ended December 31, 2008.

MacDermid Group, Inc. provided Grant Thornton with a copy of the foregoing disclosures set forth above and requested that Grant Thornton review such disclosures and furnish a letter addressed to the SEC stating whether or not Grant Thornton agrees with such statements. Grant Thornton’s response letter is attached as an exhibit to the Registration Statement.

During the fiscal years ended December 31, 2010 and 2009, MacDermid Holdings, LLC did not consult KPMG with respect to the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on our consolidated financial statements, or regarding any other matters or reportable events described under Item 304(a)(2) of Regulation S-K.

Quantitative and Qualitative Disclosures About Market Risk

Foreign Currency Risk

As a multinational company, our transactions are denominated in a variety of currencies. We have a foreign exchange hedging process to manage currency risks resulting from transactions in currencies other than the functional currency of our subsidiaries. We use financial instruments to hedge, and therefore attempt to reduce our overall exposure to the effects of currency fluctuations on cash flows. Our policy prohibits us from speculating in financial instruments for profit on exchange rate price fluctuations, from trading in currencies for which there are no underlying exposures, and from entering into trades for any currency to intentionally increase the underlying exposure.

A significant variation of the value of the U.S. Dollar against the principal currencies that have a material impact on us could result in a negative impact on our net income (loss) in the case of an appreciation of the U.S. Dollar, or a positive impact on our net income (loss) if the U.S. Dollar depreciates relative to these currencies. Currency exchange rate fluctuations affect our results of operations because our reporting currency is the U.S. Dollar, while the majority of our sales are received in currencies other than the U.S. Dollar. We incur a significant portion of our costs in currencies other than the U.S. Dollar. Certain significant costs incurred by us, such as manufacturing labor costs, research and development expenses and selling, technical and administrative expenses are incurred in the currencies of the jurisdictions in which our operations are located.

We conduct a significant portion of our business in currencies other than the U.S. Dollar, the currency in which our consolidated financial statements are reported. Correspondingly, our operating results could be affected by foreign currency exchange rate volatility relative to the U.S. Dollar. One of our business units in the United Kingdom uses the British Pound Sterling as its functional currency for paying labor and other operating costs, while approximately 25% of its revenues are denominated in U.S. Dollars. To hedge against the risk of a stronger British Pound Sterling, in 2010 and 2009, on behalf of the Autotype foreign subsidiary, we contracted with a financial institution to deliver U.S. Dollars at a fixed British Pound Sterling rate and to receive British Pound Sterling in exchange for the U.S. Dollar. We did not pay up-front premiums to obtain the hedge.

While we have implemented certain strategies to mitigate risks related to the impact of fluctuations in currency exchange rates, we cannot assure you that we will not recognize gains or losses from international transactions, as this is part of transacting business in an international environment. Not every exposure is or can

be hedged and, where hedges are put in place based on expected foreign exchange exposure, they are based on forecasts for which actual results may differ from the original estimate. Failure to successfully hedge or anticipate currency risks properly could adversely affect impact or benefit our operating results.

As of March 31, 2011, the aggregate U.S. Dollar notional amount of foreign currency forward contracts, designated as hedges, was $15.0 million. During the years ended December 31, 2010, 2009 and 2008, unrealized gains and (losses) of $0.2 million net of tax, $0.3 million net of tax and $(0.4) million, net of tax, respectively, were recorded to other comprehensive income (loss) (“OCI”) related to foreign currency hedges. During the years ended December 31, 2010, 2009 and 2008, the company recorded realized gains/(losses) of $(1.3) million, $1.4 million and zero, respectively, in other income/(expense) related to the settlement of hedged foreign exchange contracts. During the three months ended March 31, 2011 and 2010, $0.2 million and $(0.6) million, respectively, were recorded as unrealized gains/(losses) to OCI related to foreign currency hedges. During the three months ended March 31, 2011 and 2010, the company recorded realized gains (losses) of $0.3 million and $(0.5) million, respectively, in other income (expense) related to the settlement of hedged foreign exchange contracts. The fair value of the foreign currency forward contract at March 31, 2011, was a $0.6 million short term asset.


	Local Currency Amount		U.S. Dollar Amount		Percentage Settled Within One Year			Dates Contracts are Through
Derivative Assets (amounts in thousands)

British Pound Sterling		£3,991	$	6,000		100	%		June 30, 2011
British Pound Sterling		£3,778	$	6,000		100	%		September 30, 2011
British Pound Sterling		£1,933	$	3,000		100	%		December 31, 2011

			$	15,000

Foreign exchange financial instruments that are subject to the effects of currency fluctuations, which may affect reported earnings, include financial instruments which are not denominated in the functional currency of the legal entity holding the instrument. Derivative financial instruments consist primarily of forward contracts. Other financial instruments, which are not denominated in the functional currency of the legal entity holding the instrument, consist primarily of cash and cash equivalents, accounts payable and accounts receivable. The fair value of the foreign exchange financial instruments would hypothetically decrease by approximately $1.6 million as of March 31, 2011, if the U.S. Dollar were to appreciate against the British Pound Sterling by 10% of the exchange rate as of March 31, 2011. This hypothetical amount is suggestive of the effect on future cash flows under the following conditions: (1) all current payables and receivables that are hedged were not realized, (2) all hedged commitments and anticipated transactions were not realized or canceled and (3) hedges of these amounts were not canceled or offset. We do not expect that any of these conditions will be realized. We expect that gains and losses on the derivative financial instruments should offset losses and gains on the assets, liabilities and future transactions being hedged. If the hedged instruments were included in the sensitivity analysis, the hypothetical change in fair value would be immaterial. The foreign exchange financial instruments are held for purposes other than trading.

Instruments used as cash flow hedges must be effective at reducing the risk associated with the exposure being hedged and must be designated as a cash flow hedge at the inception of the contract. Accordingly, changes in the fair values of such hedge instruments must be highly correlated with changes in the fair values of underlying hedged items both at inception of the hedge and over the life of the hedge contract.

Interest Rate Risk

Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, notes payable, long-term debt, and other financing commitments.

At March 31, 2011, we had cash and cash equivalents of $88.5 million. Included in this amount is $52.9 million of cash included in money market accounts which pays us interest income. A 100 basis point increase in the interest rate we earn on our money market accounts would have an approximate $0.5 million positive impact on our interest income.

At March 31, 2011, we had total debt of $753.9 million including $402.3 million of variable interest rate debt based on either 1-month LIBOR or 1-month EURIBOR. As of March 31, 2011, we have effectively fixed our interest rate on $100.0 million of our Tranche B Facility debt variable rate debt through June 30, 2012 through the use of an interest rate collar. The fair value of the interest rate collar, excluding accrued interest, at March 31, 2011, was a $5.5 million liability. Our remaining variable interest rate debt is subject to interest rate risk, because our interest payments will fluctuate as the underlying interest rates change from market changes. A 100 basis point increase in LIBOR and EURIBOR rates would result in a higher interest expense of approximately $4.0 million annually. A 100 basis point increase in the 1-month LIBOR rates would result in lower interest expense on our interest rate collar of approximately $4.2 million annually.

The fair value of our Tranche B Facility, Tranche C Facility and Senior Subordinated Notes was $766.0 million at March 31, 2011, which was determined based upon quoted market prices. Since considerable judgment is required in interpreting market information, the fair value of the long-term debt is not necessarily indicative of the amount which could be realized in a current market exchange.

The carrying value of our Japanese senior secured bank debt of $13.6 million at March 31, 2011, approximates fair value.

The fair values of the other financial instruments were not materially different from their carrying or contract values at March 31, 2011.

Counterparty Risk

Outstanding financial derivative instruments expose us to credit loss in the event of nonperformance by the counterparties to the agreements. The credit exposure related to these financial instruments is represented by the fair value of contracts with an obligation fair value as of March 31, 2011. On a periodic basis, we review the credit ratings of our counterparties and adjust our exposure as deemed appropriate. As of March 31, 2011, we believe that our exposure to counterparty risk is immaterial.

BUSINESS

Our Company

We generate revenue through the manufacture and sale of our dynamic chemistries and by providing highly technical post-sale service to our customers through our extensive global network of specially trained service personnel. Our personnel work closely with our customers to ensure that the chemical composition and function of our dynamic chemistries are maintained as intended. As an example, a customer will engage us to manufacture and sell a product consisting of a process composed of eight successive chemical baths, each of which is made up of our specialty chemicals, in order to enhance the overall performance of that customer’s circuit boards. Not only would we provide such product, but a member of our professional service team would also visit the customer’s manufacturing facilities on a regular basis post-sale to ensure that the process sold maintains the correct chemical balance and can be used effectively in the manner and for the purpose desired.

As of December 31, 2010, we served more than 3,500 customers through our direct sales force in 24 countries and through our several distribution partners in an additional ten countries. While our dynamic chemistries typically represent only a small portion of our customers’ costs, they are critical to our customers’ manufacturing processes and overall product performance. Further, significant operational risks and switching costs make it difficult for our customers to change suppliers and allow us to retain customers and maintain our leading market positions. For the 12 months ended December 31, 2010, we generated net sales, operating profit and Adjusted EBITDA of $694.3 million, $86.4 million and $138.4 million, respectively, and for the three months ended March 31, 2011, we generated net sales, operating profit and Adjusted EBITDA of $178.5 million, $25.4 million and $37.2 million, respectively. For a reconciliation of net income (loss) attributable to MacDermid, Incorporated to Adjusted EBITDA, see “Prospectus Summary—Summary Consolidated Financial Data” and the footnotes contained therein.

We dedicate extensive resources to research and development and highly technical, post-sale customer service, while limiting our investments in fixed assets and capital expenditures. We refer to this approach as our “asset-lite, high-touch” business model, which emphasizes the “bookends” of our operations—innovation and technical service. We believe that this model enables us to focus on high growth market opportunities, maintain high margins and a high return on invested capital, and generate stable and strong cash flows. Given that our annual capital expenditures have been consistently less than 2% of our annual net sales, we believe that our cash conversion rate (the proportion of our profits converted into cash flow) is higher than a majority of the companies in our sector.

Due to our focus on offering highly specialized customer service and our customers’ reliance on such service, our personnel often become closely acquainted with our customers. We are able to utilize these strong customer relationships to identify new product opportunities and platform-level solutions, which we can further develop by drawing upon our significant intellectual property portfolio that includes over 750 issued patents and extensive technical expertise. We believe that our ability to draw upon our customer relationships and leverage our intellectual property and technical service offerings across product lines and target markets enables us to successfully position our portfolio of products within the ever-changing business environment.

Our businesses are currently benefiting from global growth trends in many of our end markets, including the increasing use of electronic devices such as mobile phones and computers, growth in worldwide automotive production and increasing oil production from offshore, sub-sea wells. In addition, over the last several years, we have increased our focus on growth in emerging markets. In 2010, approximately 39% of our net sales, approximately 38% of our gross profit and approximately 45% of our Adjusted EBITDA was generated in Asia (predominately in the greater China region) and Brazil as compared with approximately 32% of our net sales, approximately 31% of our gross profit and approximately 36% of our Adjusted EBITDA in 2008 in the same regions. In addition to the global growth trends and expansion into emerging markets, we also believe that we are effectively expanding the existing market for our dynamic chemistries by developing new applications within the electronics, general industrial and automotive, graphic arts and offshore oil production and drilling markets. These new applications include: surface coatings for solar panels, plated antennas for smart mobile devices, flexographic plates for printing consumer packaging materials, decorative components for automobile interiors and control system fluids used to prevent oil from seeping from ocean floor valves.

We have developed long-term customer relationships, often spanning decades, with, as of December 31, 2010, more than 3,500 customers worldwide. Among these customers are some of the world’s preeminent companies, such as LG, Molex, Samsung, FIAT, Ford, GM, Stanley Black & Decker and major companies in the offshore oil and gas industries. We believe that our customers place significant value on the “MacDermid” brand, which has been developed through innovation, product leadership and customer service spanning our 89-year history. We believe that we are able to service these customers and attract new customers successfully through our extensive global network of 14 manufacturing sites and 21 technical service facilities, including 8 research and development centers, in 24 countries. In order to ensure that we are able to continue to provide innovative products and highly technical service to our customers, we place a premium on maintaining a highly specialized and qualified employee base. As of December 31, 2010, nearly half of the approximately 2,000 people we employed were research and development chemists and experienced technical sales and service personnel.

Our History

MacDermid Group, Inc. was incorporated in Delaware on June 17, 2011. Prior to the completion of this offering, MacDermid Group, Inc. is a direct, wholly owned subsidiary of MacDermid Holdings, LLC and has no material assets. Following the completion of this offering, MacDermid Group, Inc. will be a holding company with no material assets other than its direct 100% ownership interest in MacDermid, Incorporated. MacDermid, Incorporated is, and will, following this offering, continue to be, the main U.S. operating entity for the MacDermid business and the direct or indirect parent entity of all the MacDermid operating companies. Please refer to “The Corporate Reorganization” for a more complete discussion of the corporate structure of the MacDermid entities.

MacDermid, Incorporated was established in Waterbury, Connecticut in 1922. On May 9, 1966, shares of MacDermid, Incorporated common stock were registered for trading. From June 22, 1966 to February 8, 1971, the shares traded on the over-the-counter system of trading and from February 8, 1971, when the NASDAQ stock exchange began trading, to February 25, 1998, the shares traded on the NASDAQ stock exchange. From February 26, 1998 to April 12, 2007, shares of MacDermid, Incorporated traded on the NYSE under the symbol “MRD”. On April 12, 2007, MacDermid, Incorporated was acquired by MDI Holdings, LLC, an entity formed by Court Square, Weston Presidio and Daniel H. Leever.

The future cash flow of MacDermid Group, Inc. will derive from, and depend on, dividends, distributions and other transfers from MacDermid, Incorporated that are generated from the operation of the MacDermid business. In light of the fact that no material change in the operation of the MacDermid business is currently contemplated, we believe that our anticipated future revenue and our cash and cash equivalents will be sufficient to meet our anticipated cash requirements through the end of fiscal year 2011. We believe that it will not be necessary to raise additional funds during the six-month period beginning on the date of this prospectus to meet the expenditures required to operate our business, including expenditures for (1) material product research and

development, (2) material acquisitions of plant and equipment and the capacity therefor, (3) material changes in the number of employees in our various departments and (4) other material areas specific to our business.

Our Businesses

Industrial—The Industrial segment supplies technological solutions and dynamic chemistries used for finishing metals and non-metallic surfaces for automotive and other industrial applications, electro-plating metal surfaces, manufacturing circuit boards and other electronic devices for the electronics industry, and fluids for the offshore oil and gas markets and specialty coated industrial films. As the regional sales mix in this segment has shifted over the past several years from more industrialized nations towards emerging markets, such as Asia and South America, we have invested significantly in these regions, including developing state-of-the-art facilities in Suzhou, China, and São Paulo, Brazil, to better serve our customers there. We have over 600 personnel and three manufacturing facilities in Asia and remain focused on further increasing our presence in the region.

The Industrial segment is composed of the following three businesses, which share manufacturing facilities and administrative resources:

Industrial Solutions. We believe that we have a leading position worldwide in industrial metal and plastic finishing chemistries based on 2010 net sales. In this business, our dynamic chemistries are used for finishing, cleaning and providing surface coatings for a broad range of metal and non-metal surfaces. These coatings may have functional uses, such as improving wear and tear or providing corrosion resistance for appliance parts, or decorative uses, such as providing gloss finishes to components used in automotive interiors. As of December 31, 2010, we manufactured more than 1,000 chemical compounds for these surface coating applications, including cleaning, activating, polishing, electro and electroless plating, phosphatizing, stripping and coating, anti-tarnishing and rust inhibiting for metal and plastic surfaces. Our customer base is highly fragmented and includes customers in the following end markets: automotive parts, industrial parts, transportation equipment, electronics equipment and appliances and plumbing goods. Growth in this business is primarily driven by increased world-wide automobile production and demand for appliances, computers and general engineering hardware.

Offshore Solutions. We produce water-based hydraulic control fluids for major oil companies and drilling contractors for offshore deep water production and drilling applications. Production fluids are used in the control systems that open and close critical valves for the deep water oil extraction and transportation process. Drilling fluids are used in control systems to operate valves on the ocean floor. We believe there is significant growth potential for this business as the oil and gas industry continues to grow, as evidenced by the $66.5 billion of capital that is forecasted to be spent globally by deep oil and gas producers from 2011 through 2016, a 109% increase over the prior five-year period, and as oil is produced from new sub-sea wells.

Printing—The Printing segment supplies an extensive line of flexographic plates that are used in the commercial packaging and commercial printing industries. We manufacture photopolymers used to produce printing plates for transferring images onto commercial packaging, including packaging for consumer food products, pet food bags, corrugated boxes, labels and beverage containers. In addition, we also produce

photopolymer printing plates for the flexographic and letterpress newspaper and publications markets. Our products are used to improve print quality and printing productivity. Over the last three years, we have shifted our business mix to refocus this segment on high innovation, higher cash flow businesses by divesting two capital intensive, lower growth businesses. The growth in this segment is driven by consumer demand and advertising.

Our Competitive Strengths

We believe that the following are our key competitive strengths:

Leading Market Position in Attractive Niche Markets. We believe, based on our 2010 net sales, that a majority of our operations hold leading positions in the product markets they serve, including the number one or number two market share positions held by Electronic and Industrial Solutions in the product markets they serve. We believe that the combination of our global presence, history of innovation, process know-how, strong commitment to research and development, dedication to customer service and broad range of proprietary products distinguishes us from our competitors, allowing us to maintain our leading market share positions Furthermore, we believe the diversity of the niche markets we serve will enable us to continue our growth throughout economic cycles and mitigate the impact of a downturn in any single market.

Track Record of Targeted Growth. We have a demonstrated history of achieving targeted growth by expanding into new, fast-growing geographic markets, generating growth in our higher margin businesses and enhancing our product offerings by drawing on our core competencies to extend our existing technologies into adjacent markets. We believe that the experience and knowledge gained through our history of innovation and track record of successfully entering new markets enables us to identify and capitalize on future growth opportunities.

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We generated 77% of our 2010 net sales from our higher growth, higher margin Industrial segment, compared to 61% of our net sales in 2005.

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We have significantly expanded our Offshore Solutions business over the last five years, representing a 2005-2010 net sales compound annual growth rate of over 12%.

Our key proprietary technology, service oriented business model and the high costs our customers must incur in order to switch suppliers have allowed us to achieve stable, industry-leading margins throughout our history and have protected our market share. The following chart highlights the stability of our margins since 1995:

Stable Financial Performance Through Economic Cycles

LOGO

(1)	Gross Profit is defined as net sales minus cost of sales. The percentages represent gross profit margin, which is defined as gross profit divided by net sales.

Customer, Product, Application, End-Market and Geographic Diversity. We offer a broad range of products and services to diverse end markets, ranging from electronics to printing to offshore oil drilling. As of December 31, 2010, we served more than 3,500 customers globally, with no single customer accounting for more than 3% of our 2010 net sales. We have a significant presence in the rapidly growing Asian and Brazilian markets, with over $268 million in 2010 net sales to customers in those regions. In addition, each of our product lines serves numerous and often unrelated end markets. Our customer, product and geographic diversity help to mitigate the effects of any adverse event affecting a specific industry, end market or region.

LOGO

Our Business Strategy

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Extend Product Breadth: We intend to extend many of our product offerings through the development of new applications for our existing products in our existing markets. For example, we are extending our capabilities for films used in in-mold decoration for high-end automotive interiors to exteriors and other applications. We are also leveraging our capabilities in plating technology in printed circuits and automotive applications to meet the emerging technological and environmental needs of our customers.

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Continue to Grow Internationally with Our Customers: We intend to continue to grow internationally by expanding our product sales to our existing multinational customers as they penetrate emerging regions. We continue to make investments, especially in technical staff, in high-growth markets such as the greater China region and Brazil in order to better service our customers.

Leverage our Capabilities to Grow into New Markets and Applications. Building on our core competencies in product innovation, applications development and technical services, we intend to expand into new high-growth markets and expand upon our existing technologies to develop new products for new applications in markets that are adjacent to those we currently serve. Examples of our initiatives include:

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Plating for Solar Cell Metallization: We are developing a chemistry solution using light-induced, electroless silver technology to enhance the conductivity and reduce the usage of screened silver paste on solar cells that will result in a higher manufacturing yield from such solar cells at a lower cost to our customers. In the longer term, we believe that we can extend our technology to create a new way of manufacturing crystalline silicon solar cells and eliminate the need for silver paste.

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Plating for Molded Interconnect Devices: We are extending our “plating on plastics” technology into antenna manufacturing for smartphones. We believe that our technology results in a higher manufacturing yield and lower cost to our customers. We believe that we won the vast majority of new capacity installation of this product in 2010, thereby successfully increasing our market share.

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Light-Emitting Diode (“LED”) Lighting Market: We are developing products for thermal management systems and using silver as a wire-bondable and reflective finish option to enhance energy conversion into light.

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High Value PET Recycling: As worldwide demand for recycled polyethylene terephthalate (“PET”) grows, we are leveraging our strong position in Europe for specialized cleaners and defoamers that are used in recycling plastic products made of PET to expand that business globally, especially in emerging markets such as the greater China region and South America. Our specialized cleaners and defoamers enable recycled PET to be used in higher value applications such as bottle resin.

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Digital Flexographic Printing: We have developed an innovative LUX^® process, which uses a flat top dot processing technology that significantly increases the quality and consistency of the printed image from a flexographic printing plate in a manner that is more efficient and cost effective for our customers.

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passivates. We have hired specialists in rolling lubricants and metal pre-treatment with the expectation of rapid expansion of our business in this market. We believe the addressable market for metals is over $750 million.

Maintain Our Technology Leadership Position. Our continued success in product innovation and applications development is a result of our focused commitment to technology research and development. This commitment has historically allowed us to sustain and enhance the growth and profitability of our businesses and further penetrate our target markets, including our existing customer base. Because the highly technical service we provide to our customers is an integral part of their successful use of our products, our service personnel become closely acquainted, and develop deep relationships, with our customers. These close customer relationships enable us to identify and forecast the needs of our customers and draw upon our intellectual property portfolio and expertise in technology research and development to create new products and successfully position our portfolio of products within the ever-changing business environment.

Continue to Pursue Operational Efficiencies. We consistently focus on opportunities to reduce operating expenses through facility optimization, product and raw material rationalization and by maintaining a relatively low fixed cost structure that supports our growth strategy. In 2009, during the economic crisis, we permanently reduced costs by over $40 million annually by closing certain manufacturing facilities and executing a series of operational restructuring initiatives that streamlined our organizational structure and reduced our workforce in our manufacturing and general and administrative functions. These cost reductions resulted in an increase in our Adjusted EBITDA margin for 2010 by over 29.2% compared to 2008. For a reconciliation of net income (loss) attributable to MacDermid, Incorporated to Adjusted EBITDA, see “Prospectus Summary—Summary Consolidated Financial Data” and the footnotes contained therein. Our operational restructuring initiatives, combined with the results of our decision during the economic downturn to obtain additional sources for certain raw materials, resulted in an increase in our gross profit margin percentage from 40.3% for the year ended December 31, 2008 to 46.5% for the year ended December 31, 2010, representing a 15.4% increase.

Our Products

We review our portfolio of products quarterly to identify and replace low margin products with high margin product offerings. Accordingly, our product mix frequently changes depending upon customer demand and the cost and selling prices related to any given product. As of March 31, 2011, the following products were among those offered to our customers in our Electronic Solutions business:

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Plating products, which are used to plate holes drilled through printed circuit boards to connect opposite sides of the board and to connect the different layers of multi-layer printed circuit boards;

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Final finishes, which are used on printed circuit boards to preserve the solderability of the finished boards;

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Circuit formation products, which are an assortment of products to promote adhesion and form circuit patterns; and

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Oxides, which are conversion coatings used in the fabrication of multilayer circuit boards.

As of March 31, 2011, the following products were among those offered to our customers in our Industrial Solutions business:

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Pre-treatment and cleaning solutions, which are applied to prepare the surfaces of a wide variety of industrial products for additional treatment. We have developed a complete line of aqueous and semi-aqueous pre-treatment and cleaning products, which are more environmentally friendly than the solvents they replace;

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Functional conversion coatings, which are applied to metals to enhance corrosion resistance and paint adhesion in a wide spectrum of industrial applications where heavy duty usage and exposure to unfavorable environments are anticipated. Our products plate various parts that are used in automotive and aerospace equipment, appliances, computer hard disks and other electronic products;

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Electroless nickel, which is applied to a variety of metal and plastic surfaces to enhance corrosion resistance, wear resistance, solderability and to repair worn or over-machined surfaces in a variety of applications. We were among the earliest developers of electroless nickel products, which are safer and more environmentally friendly than the products they replace;

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Decorative plating products, which can be used on all surface conditions to provide mirror-like finishes on steel, alloys or plastic in a more environmentally friendly manner. We offer an extensive range of quality decorative plating processes used in the plating of appliances, plumbing goods and automotive trim; and

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Hard-coated films for the membrane switch and touch screen markets.

The following table sets forth the classes of our products and the respective percentage of total consolidated revenue for fiscal years 2010, 2009 and 2008 and for the fiscal quarters ended March 31, 2011 and March 31, 2010:


Class of Products	Fiscal Year 2010				Fiscal Year 2009				Fiscal Year 2008				Three Months Ended March 31, 2011				Three Months Ended March 31, 2010
(in thousands, except percentages)
Proprietary chemicals	$	641,233	92.4	%	$	549,880	92.5	%	$	686,989	92.3	%	$	167,571	93.9	%	$	154,633	91.8	%
Resale, Equipment, and other		53,100	7.6	%		44,273	7.5	%		57,219	7.7	%		10,950	6.1	%		13,855	8.2	%

Total net sales	$	694,333	100.0	%	$	594,153	100.0	%	$	744,208	100.0	%	$	178,521	100.0	%	$	168,489	100.0	%

Customers and Classes of Products: We believe that our business is not materially dependent upon a single customer. Additionally, although we have a diverse customer base and no customer or distributor constitutes 10% or more of our consolidated net sales, we do have customers and independent, third-party distributors, the loss of which could have a material adverse effect on results of operations for the affected earnings periods. No material part of our business is subject to renegotiation or termination at the election of a governmental unit. We sell three classes of products which each constitute 10% or more of our net sales. Net sales of functional products, which are products designed to increase the

performance of the surfaces they are used to treat, for the years ended December 31, 2010, 2009 and 2008 approximated 18%, 17% and 20%, respectively, of our consolidated net sales. Sales of decorative products, which are products designed to enhance the appearances of the surfaces they treat, for the years ended December 31, 2010, 2009 and 2008 approximated 11%, 11% and 13%, respectively, of our consolidated net sales. Sales of metalization products, which are used to plate electronic components, for the years ended December 31, 2010, 2009 and 2008 approximated 12%, 11% and 11%, respectively, of our consolidated net sales.

Proprietary sales are generated from manufactured chemical compounds produced from our own research and development laboratories and manufacturing facilities. In many cases, these products are protected with patents or trademarks. Proprietary products have higher gross margins than non-proprietary products, and are perceived by our management to be more critical to our overall performance.

Methods for selling and marketing our proprietary products vary slightly by geographic region. In total, we generate business through the efforts of sales and service personnel and regional distributors and manufacturing representatives. In the Americas, approximately 290 sales and service personnel market our entire line of proprietary products. In certain areas of the United States, distributors and manufacturing representatives also sell and service many of our products. We market certain of our products through wholly owned subsidiaries in Canada and Mexico, and through 95% ownership of our operations in Brazil. In Europe, approximately 340 sales and service representatives, who are employed by our wholly owned subsidiaries located in Belgium, Czech Republic, France, Germany, Great Britain, Italy, Luxembourg, the Netherlands, Spain and Sweden, market our proprietary products. In the Asia-Pacific region, our local subsidiaries employ approximately more than 420 sales and service representatives to market our proprietary products through either wholly owned subsidiaries or branches in Australia, mainland China, Hong Kong, India, Japan, New Zealand, Singapore, South Korea and Taiwan. In addition to the countries where we have wholly owned subsidiaries, some of our proprietary chemicals are sold in other countries throughout Asia, Europe and South America through distributors. Such resale items are marketed in conjunction with and as an aid to the sale of proprietary chemicals.

Revenue from product sales, including freight charged to customers, is recorded upon shipment to the customer if the collection of the resulting receivable is probable. Our stated shipping terms are customarily FOB shipping point and do not include customer inspection or acceptance provisions. Equipment sales arrangements may include right of inspection or acceptance provisions in which case revenue is deferred until these provisions have been satisfied. If circumstances arise where title has not passed, or revenue is not earned, we defer revenue recognition in accordance with criteria set forth in Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements and Staff Accounting Bulletin No. 104, Revenue Recognition.

There is no material portion of our business that is subject to seasonality. Likewise, there is no major portion of our business, or business segments, dependent upon a single customer or a few customers, the loss of which would have a materially adverse effect on our business.

Research and Development

Research in connection with proprietary products is performed principally in the United States, Great Britain, Japan and China. We spent approximately $21.0 million during fiscal year 2010, $20.1 million during fiscal year 2009 and $25.1 million during fiscal year 2008 on research and development activities. Substantially all research and development activities were performed internally.

Patents, Trademarks and Proprietary Products

We own more than 750 domestic and foreign patents. The patents we hold are important to our business and have remaining lives of varying duration. Although certain of these patents are becoming increasingly more important to our business, we believe that our ability to provide technical and testing services to customers, and to meet our customers’ rapid delivery requirements of our customers is equally, if not, more important. In

addition, we have many proprietary products which are not covered by patents and which are responsible for a large component of our total sales. Further, we hold a number of domestic and foreign tradenames and trademark registrations and applications for registration which we consider to be of value in identifying the MacDermid business and our products. We do not hold nor have we granted any franchises or concessions.

Government and Environmental Regulation

We are subject to numerous federal, state and local laws and regulations in the countries in which we operate, including tax and other laws that govern the way we conduct our business. However, no portion of our business is subject to re-negotiation of profits or termination of contracts or subcontracts at the election of the governments in the countries in which we operate.

In response to increased government attention to environmental matters worldwide, we continue to develop proprietary products designed to reduce the discharge of pollutant materials into the environment and eliminate the use of certain targeted raw materials while enhancing the efficiency of customer chemical processes.

Competitive Environment

We provide a broad line of proprietary chemical compounds and supporting services. We have many competitors in some proprietary product areas. Some large competitors operate globally, as we do, but most operate only locally or regionally. To the best of our knowledge, no single competitor competes with all our proprietary products. We maintain extensive support, technical and testing services for our customers, and are continuously developing new products. We believe that our combined abilities to manufacture, sell, service and develop new products and applications, enable us to compete successfully both locally and internationally.

Properties

Our corporate executive office is at 1401 Blake Street, Denver, Colorado. We also operate manufacturing facilities, laboratory and warehouse and sales offices throughout the world. As of December 31, 2010, we owned 15 facilities and leased 42 facilities. The following table lists our principal facilities by segment and gives a brief description of the activities performed at each facility:


Location	Principal Use	Ownership status
Corporate & other support functions
Denver, Colorado	Executive offices		Owned	*
Waterbury, Connecticut	Industrial and Printing segment administration offices, marketing offices, corporate service, customer support and research laboratories		Owned	*

Industrial Segment
Ferndale, Michigan	Factory, warehouse and offices		Owned	*
New Hudson, Michigan	Laboratories and offices		Owned	*
Pasadena, Texas	Factory, warehouse and offices		Owned	*
São Paulo, Brazil	Factory, warehouse and offices		Leased
Hsin Chu, Taiwan	Factory, warehouse, laboratories and offices		Owned
Panyu, China	Factory, warehouse, laboratories and offices		Owned
Suzhou, China	Factory, laboratories and offices		Owned
Sungnam-City, South Korea	Warehouse and offices		Leased
Singapore	Warehouse and offices		Leased
Hong Kong	Warehouse and offices		Leased
Kawasaki, Japan	Laboratories and offices		Leased
Birmingham, United Kingdom	Factory, warehouse, laboratories and offices		Leased
Wigan, United Kingdom	Factory, warehouse and offices		Owned
Wantage, United Kingdom	Factory, warehouse, laboratories and offices		Leased
Novara, Italy	Factory, warehouse, laboratory and offices		Owned
Frost, Germany	Warehouse and offices		Leased
Barcelona, Spain	Warehouse, laboratory and offices		Owned

Printing Segment
Morristown, Tennessee	Factory, warehouse, laboratory and offices		Owned	*
Atlanta, Georgia	Offices and laboratories		Owned	*
San Marcos, California	Factory, warehouse, laboratory and offices		Owned	*
Middletown, Delaware	Factory, warehouse and offices		Owned	*
Cernay, France	Warehouse and offices		Leased
Melbourne, Australia	Factory, warehouse and offices		Leased

*Subject

to a mortgage granted to secure our obligations under the Credit Facilities.

We believe that all of our facilities and equipment are in good condition, are well maintained and are adequate for our present operations.

Insurance

Our belief is that we have customary levels of insurance for a company of our size in our industry. Our insurance policies are subject to deductibles and limits. We have property coverage with a limit of $150.0 million, domestic employee benefits coverage with a limit of $2.0 million and cargo transport liability with a limit of $1.5 million. We also maintain other types of insurance, such as aviation products liability, automobile, and general liability insurance. In the first quarter of fiscal year 2011, we paid $1.8 million in aggregate insurance premiums.

We maintain insurance coverage at levels that we believe to be reasonable. However, we are not fully insured against all potential hazards incident to our business. Additionally, we may incur losses beyond the limits of, or outside the coverage of, our insurance. We maintain full replacement value insurance coverage for property damage to a majority our facilities and business interruption insurance. Nevertheless, a significant business interruption in the operation of one or more of our facilities could have a material adverse effect on our business. As a result of market conditions, premiums and deductibles for certain insurance policies can increase substantially and, in some instances, certain insurance may become unavailable or available only for reduced amounts of coverage.

Employees

We employ individuals in 24 countries. As of March 31, 2011, we employed approximately 2,000 full-time employees, including approximately 1,000 research and development chemists and experienced technical service and sales personnel.

Legal Proceedings

In the ordinary course of our business, we are subject to periodic lawsuits, investigations and claims, including, but not limited to, product liability claims, contractual disputes, premises claims and employment and environmental, health, and safety matters. Although we cannot predict with certainty the ultimate resolution of lawsuits, investigations and claims asserted against us, we do not believe any currently pending legal proceeding to which we are a party will have a material adverse effect on our business, prospects, financial condition, cash flows and results of operations.

Corporate Information

MANAGEMENT AND BOARD OF DIRECTORS

Executive Officers and Directors

Set forth below is information concerning our current executive officers and directors and prospective directors as of June 17, 2011.


Name	Age		Position
Daniel H. Leever		62	Director, Chairman and Chief Executive Officer
Frank J. Monteiro		41	Senior Vice President and Chief Financial Officer
John L. Cordani		48	Vice President, Corporate Secretary and General Counsel
Michael V. Kennedy		49	Treasurer and Director of Tax
Jerry A. Mitchell		47	Corporate Controller
Joseph M. Silvestri		48	Director
Kevin D. Brown		36	Director
David L. Ferguson		56	Director
Michael F. Finley		49	Director
*			Director

*	Appointment to our Board upon consummation of this offering.

Backgrounds of Current Executive Officers and Directors and Prospective Directors

Each executive officer serves at the discretion of our Board and holds office until his successor is elected and qualified or until his earlier death, resignation or removal.

Set forth below is information concerning our current executive officers and directors and prospective directors identified above.

Daniel H. Leever: Mr. Leever has been a member of the board of directors of MacDermid Group, Inc. since its formation and a member of the board of directors of MacDermid, Incorporated since 1989. He has served as Chief Executive Officer and Chairman of the board of directors of MacDermid Group, Inc. since its formation and as Chief Executive Officer of MacDermid, Incorporated since 1990. He has been Chairman of the board of directors of MacDermid, Incorporated since 1998. From 1989 to 1990, Mr. Leever served as Senior Vice President and Chief Operating Officer of MacDermid, Incorporated. Mr. Leever initially joined MacDermid, Incorporated as an employee in 1982. Mr. Leever attended undergraduate school at Kansas State University and the graduate school at the University of New Haven School of Business.

We believe Mr. Leever’s qualifications to serve on our board of directors include his extensive knowledge of our company and our industry and his years of leadership at our company.

Frank J. Monteiro: Mr. Monteiro has served as the Senior Vice President and Chief Financial Officer of MacDermid Group, Inc. since its formation and as the Senior Vice President and Chief Financial Officer of MacDermid, Incorporated since February 2010. From April 2007 until February 2010, Mr. Monteiro served as Vice President of Finance and Treasurer of MacDermid, Incorporated. Mr. Monteiro joined the MacDermid business in June 1998 and, from June 1998 to April 2007, served in the positions of General Accounting Manager, Domestic Accounting Manager and Assistant Controller of Industrial Americas operations, and as Assistant Treasurer and Risk Manager of MacDermid, Incorporated. Mr. Monteiro serves on the board of directors of United Way of Greater Waterbury. He is a director and member of the Finance and Audit Committees for Holy Cross High School in Waterbury, Connecticut. Mr. Monteiro received a Bachelor of Science in Accountancy from Bentley University.

John L. Cordani: Mr. Cordani has served as the Vice President, Secretary and General Counsel of MacDermid Group, Inc. since its formation and as the Vice President, Secretary, and General Counsel of MacDermid, Incorporated since 1993, other than during the period from May 2000 to March 2002, when he worked as a partner at Carmody & Torrance LLP. From 1989 until 1992, Mr. Cordani served as IP Manager of MacDermid, Incorporated. Having joined MacDermid in 1986, Mr. Cordani served as a Researcher for the company from 1986 until 1989. Mr. Cordani also works, and has since 2001, as an Adjunct Professor of Law at Quinnipiac University Law School. Mr. Cordani received a Juris Doctor from Quinnipiac University Law School, a Master of Science in Materials Science from Rensselaer Polytech, and a Bachelor of Science in Chemical Engineering from Texas A&M University.

Michael V. Kennedy: Mr. Kennedy has served as the Treasurer and Director of Tax of MacDermid Group, Inc. since its formation and as the Director of Tax of MacDermid, Incorporated continuously since August 2006 and previously from January 1997 until September 2001. Mr. Kennedy has also served as Treasurer of MacDermid, Incorporated since May 2011. From October 2001 through June 2006, Mr. Kennedy was Vice President-Tax for Allied Domecq North American Corporation, an alcoholic beverage company. From October 1989 to December 1996, he was a tax manager at Dynamics Corporation of America, an electrical appliance and electronic device manufacturer. Mr. Kennedy began his career at Arthur Andersen & Co as a tax accountant from 1986 to 1989. Mr. Kennedy is a certified public accountant and received a Bachelor of Business Administration in Accounting from Pace University.

Jerry A. Mitchell: Mr. Mitchell has served as the Corporate Controller of MacDermid Group, Inc. since its formation and as the Corporate Controller of MacDermid, Incorporated since September 2006. Mr. Mitchell joined MacDermid, Incorporated in November 2005 as the Director of Operational Accounting. Before joining the company, Mr. Mitchell worked at Arthur Andersen & Co., an accounting firm, as an auditor for six years. He is a Certified Public Accountant and received his Bachelor of Science in Accountancy from Arizona State University.

Joseph M. Silvestri: Mr. Silvestri has been a member of the board of directors of MacDermid Group, Inc. since its formation and a member of the board of directors of MacDermid, Incorporated since December 1999. Mr. Silvestri is a Managing Partner of Court Square Capital Partners II, L.P., an affiliate of Court Square Capital Partners, which, together with its predecessor, Citigroup Venture Capital, Ltd., has employed Mr. Silvestri as a Managing Partner since 1990. He is a member of the boards of directors and audit committees of SGS International, Inc. and Triumph Group, Inc. He also serves on the board of directors of Worldspan, L.P. Mr. Silvestri received a Masters in Business Administration from Columbia Business School and a Bachelor of Science in Civil Engineering from Pennsylvania State University.

We believe Mr. Silvestri’s qualifications to serve on our board of directors include his affiliation with Court Square Capital Partners, his extensive experience as a director, his financial expertise and his significant experience in working with companies controlled by private equity sponsors.

Kevin D. Brown: Mr. Brown has been a member of the board of directors of MacDermid Group, Inc. since its formation and a member of the board of directors of MacDermid, Incorporated since April 2007. Mr. Brown is a Principal of Court Square Capital Partners and has been with the firm since April 2006, after serving as a Vice President at Apax Partners, a private equity investment group, since 2003. Prior to Apax Partners, Mr. Brown worked at Alta Communications, a private equity firm specializing in investments in media and communications companies, and the chemicals investment banking group of J.P. Morgan. Mr. Brown received a Masters in Business Administration from the Wharton School of Business, where he graduated as a Palmer Scholar, and a Bachelor of Science in Commerce from the McIntire School of Commerce at the University of Virginia.

We believe Mr. Brown’s qualifications to serve on our board of directors include his affiliation with Court Square Capital Partners and his significant experience working with companies controlled by private equity sponsors.

David L. Ferguson: Mr. Ferguson has been a member of the board of directors of MacDermid Group, Inc. since its formation and a member of the board of directors of MacDermid, Incorporated since April 2007. Mr. Ferguson has been a partner at Weston Presidio since 2003. He is a member of the boards of directors of Evenflo, RE/MAX, LLC, Robbins Bros. Jewelry, Inc and Xenon Arc. Mr. Ferguson was formerly a director of Cellu Tissue Holdings, Inc. from June 2006 through December 2010. From 1989 to 2003, Mr. Ferguson was a partner with JPMorgan Partners. Mr. Ferguson is a certified public accountant and received a Doctorate in Commercial Science from Loyola University Maryland. He also received a Masters in Business Administration in Finance from the Wharton School of Business and a Bachelor of Arts in Accounting from Loyola University Maryland.

We believe Mr. Ferguson’s qualifications to serve on our board of directors include his knowledge of MacDermid, Incorporated, his extensive director experience, and his financial and accounting expertise.

Michael F. Finley: Mr. Finley has been a member of the board of directors of MacDermid Group, Inc. since its formation and been a member of the board of directors of MacDermid, Incorporated since May 2011. Mr. Finley has served as a Partner with Court Square Capital Partners since 2008. Previously, he was a Managing Director of The Cypress Group since 1998 and had been a member of The Cypress Group since its formation in April 1994. Prior to joining The Cypress Group, he was a vice president in the Merchant Banking Group at Lehman Brothers Inc. Mr. Finley received a Masters of Business Administration from the University of Chicago Booth School of Business and a Bachelor of Arts in Economics and Accounting from the University of St. Thomas. Mr. Finley serves on the board of directors of Wyle, Inc. and has served on the board of directors of Affinia Group Inc. from December 2004 to March 2011, on the board of directors of CPI, Inc. from April 2006 until February 2011 and on the board of directors of Williams Scotsman International, Inc. from May 1997 until November 2007.

We believe Mr. Finley’s qualifications to serve on our board of directors include his experience working with companies controlled by private equity sponsors and his extensive experience in finance and financial advisory work.

Board of Directors

Board Composition

Our business and affairs are managed under the direction of our Board. Prior to the completion of this offering, our Board consists of five directors and, immediately following the completion of this offering, our Board will consist of eight directors. Pursuant to the Securityholders’ Agreement, until they cease to own at least 7.5% of our outstanding common stock, each of Court Square and Weston Presidio will have the right to designate individuals for nomination to our Board. Pursuant to the Securityholders’ Agreement, the other securityholders party thereto are required to vote for the election of such designated nominees. The number of individuals each of Court Square and Weston Presidio is entitled to designate for nomination by our Board is dependent on the amount of our common stock then owned by such entity. See “Certain Relationships and Related Party Transactions—Relationship with Court Square and Weston Presidio—Securityholders’ Agreement”. Because of their affiliations with Court Square or Weston Presidio or their role as an executive officer of the company, none of our current or prospective directors are “independent” under the listing rules of the NYSE or Rule 10A-3 of the Securities Exchange Act of 1934 (as amended, the “Exchange Act”), except for , who will join our Board upon consummation of this offering. Within one year following the completion of this offering, we intend to appoint two additional independent directors.

Our certificate of incorporation and by-laws provide that our directors are elected annually. Each of our directors will hold office until his successor has been duly elected and qualified or until his earlier death, resignation or removal.

Controlled Company Status

After this offering, Court Square and Weston Presidio will collectively beneficially own a majority of our outstanding common stock, and we will be a “controlled company” under the corporate governance rules of the NYSE. As a controlled company, we are eligible for exemptions from some of the requirements of these rules, including the requirements (1) that a majority of our Board consist of independent directors, (2) that we have a nomination and governance committee and a compensation committee, which are each composed entirely of independent directors and governed by a written charter addressing the respective committee’s purpose and responsibilities and (3) for annual performance evaluations of the nomination and governance committee and the compensation committee. We intend to avail ourselves of some or all of these exemptions for so long as Court Square and Weston Presidio or any other person, group or entity continues to beneficially own a majority of our outstanding voting shares. In the event that we cease to be a controlled company within the meaning of these rules, we will be required to comply with these provisions after specified transition periods.

More specifically, if we cease to be a controlled company within the meaning of these rules, we will be required to (1) satisfy the majority independent board requirement within one year of our status change, (2) have at least one independent member on each of our nomination and governance committee and compensation committee by the date of our status change, (3) have at least a majority of independent members on each committee within 90 days of the date of our status change and (4) have fully independent committees within one year of the date of our status change.

Committees

Our Board has established an audit committee, a compensation committee and a nominating and corporate governance committee, each of which will have the composition and responsibilities described below. The audit committee, compensation committee and nominating and corporate governance committee all operate under charters approved by our Board, which are available on our website.

Audit Committee

The members of the audit committee are expected to be , and with serving as the chair. We expect our Board to determine to be independent under the SEC and NYSE rules.

The SEC and NYSE rules allow an issuer to phase-in, in connection with an initial public offering, the number of directors on the audit committee as well as the independence of such directors. Under the initial public offering phase-in, at the time of listing, the audit committee must have at least one member, and that member must be an independent director (as defined in the SEC and NYSE rules) and must have accounting or related financial management expertise, as required by the NYSE rules, at the time of listing. Within 90 days after the effective date of the Registration Statement, the audit committee must have at least two members, and a majority of the members of the audit committee must be independent. Within one year after the effective date of the Registration Statement, the audit committee must have at least three members, all of whom must be independent. In addition, each member of the audit committee is required to be financially literate or must become financially literate within a reasonable period of time after his or her appointment to the audit committee, and at least one member of the audit committee must have accounting or related financial management expertise as required by the NYSE rules. qualifies as an “audit committee financial expert” as such term is defined under the SEC rules. While the NYSE rules do not require that a listed company’s audit committee include a person who satisfies the definition of an “audit committee financial expert” under the SEC rules, a board of directors may presume that such a person has the required accounting or related financial management expertise under the NYSE rules. We will modify the composition of our audit committee as required to comply with the SEC and NYSE rules.

Our audit committee is responsible for, among other things:

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reviewing and approving the selection of our independent registered public accounting firm, and approving the audit and non-audit services to be performed by our independent registered public accounting firm;

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monitoring the integrity of our financial statements and our compliance with legal and regulatory requirements as they relate to financial statements or accounting matters;

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reviewing the adequacy and effectiveness of our internal control policies and procedures;

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discussing the scope and results of the audit with the independent auditors and reviewing with management and the independent auditors our interim and year-end operating results; and

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preparing the audit committee report that the SEC requires in our annual proxy statement.

The audit committee will have the power to investigate any matter brought to its attention within the scope of its duties and to retain counsel for this purpose where appropriate.

Compensation Committee

The members of the compensation committee are expected to be , and with serving as the chair. The compensation committee is responsible for, among other things:

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overseeing our compensation policies, plans and benefit programs;

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reviewing and approving for each of our executive officers: the annual base salary, the annual incentive bonus, including the specific goals and amount, equity compensation, employment agreements, severance arrangements and change in control arrangements, and any other benefits, compensations or arrangements;

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reviewing and approving compensation to our non-executive directors;

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preparing the compensation committee report that the SEC requires to be included in our annual proxy statement; and

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administrating our equity compensation plans.

Nominating and Corporate Governance Committee

The members of the nominating and corporate governance committee are expected to be , and with serving as the chair. The nominating and corporate governance is responsible for, among other things:

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assisting our Board in identifying prospective director nominees and recommending nominees for each annual meeting of stockholders to our Board;

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reviewing developments in corporate governance practices and developing and recommending governance principles applicable to our Board;

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reviewing the succession planning for our executive officers;

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overseeing the evaluation of our Board and management; and

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recommending members for each board committee to our Board.

Compensation Committee Interlocks and Insider Participation

During the fiscal year ended December 31, 2010, Mr. Leever made recommendations to the MacDermid, Incorporated board of directors regarding compensation for the company’s executive officers, other than with respect to his own compensation.

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Code of Ethics

In connection with this offering, our Board will adopt a code of ethics that establishes the standards of ethical conduct applicable to all our directors, officers, employees, consultants and contractors. The code of ethics will address, among other things, competition and fair dealing, conflicts of interest, financial matters and external reporting, company funds and assets, confidentiality and corporate opportunity requirements, the process for reporting violations of the code of ethics, employee misconduct, conflicts of interest or other violations. Our code of ethics will be publicly available on our website at www.macdermid.com. Any waiver of our code of ethics with respect to our chief executive officer, chief financial officer, controller or persons performing similar functions may only be authorized by our audit committee and will be disclosed as required by applicable law.

Director Compensation

The directors of MacDermid, Incorporated in 2010 were Daniel H. Leever, Joseph M. Silvestri, Michael A. Delaney, Kevin D. Brown and David L. Ferguson. We currently do not pay our directors any compensation for serving on our Board. Daniel H. Leever was an executive officer as well as a director and did not receive any compensation for his services as a director in addition to his executive compensation.

We are currently in the process of determining the compensation packages of the directors who will comprise our Board following consummation of this offering. Because this is an ongoing process, it is not currently possible to include meaningful disclosure on this subject. Accordingly, we have not included a section discussing the details of our anticipated director compensation program. As the process progresses, we will include the relevant disclosure in subsequent amendments to the registration statement, of which this prospectus forms a part. We anticipate that only those directors who are considered independent directors under the rules of the NYSE will receive compensation from us for their service on our Board.

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COMPENSATION DISCUSSION AND ANALYSIS

Executive Summary

This Compensation Discussion and Analysis explains the material elements of the compensation paid to our named executive officers in 2010, who are set forth in the table below:


Name		Title
Daniel H. Leever		Chairman and Chief Executive Officer
Frank J. Monteiro		Senior Vice President and Chief Financial Officer
John L. Cordani		Vice President, Corporate Secretary and General Counsel
Michael V. Kennedy		Treasurer and Director of Tax
Jerry A. Mitchell		Corporate Controller

All our named executive officers are officers of each of MacDermid Group, Inc., MacDermid, Incorporated and MacDermid Holdings, LLC. The board of directors of each of MacDermid Group, Inc., MacDermid, Incorporated and MacDermid Holdings, LLC consist of the same members and are referred to interchangeably throughout this Compensation Discussion and Analysis as the “Board”.

This Compensation Discussion and Analysis is intended to explain our compensation philosophy and the factors considered in establishing our executive compensation programs. This disclosure should be read in connection with the compensation tables and narrative disclosure included elsewhere in this prospectus, all of which provide further detail on the compensation granted to our named executive officers.

Compensation Philosophy

The Board believes that well-designed compensation programs can significantly impact the performance of senior management, the capabilities and leadership of whom are significant factors in our long-term success. Therefore, a principal objective of our compensation programs has been to attract, motivate and retain the most competent and skilled executives within the specialty chemical industry.

Our compensation philosophy also allows for flexibility in establishing executive compensation based on an evaluation of information prepared by management and other advisors and other subjective and objective considerations deemed appropriate by the Board, subject to any contractual agreements with our executives. This flexibility is important to ensure our compensation programs are competitive and that our compensation decisions appropriately reflect the unique contributions and characteristics of our named executive officers.

The Board does not believe in rigid adherence to benchmarks or compensation formulas and strives to make compensation decisions which effectively support our compensation objectives and reflect the unique attributes of the company and each named executive officer.

Guiding Principles

In accordance with this philosophy, the Board is guided by the following principles in structuring and administering the company’s compensation programs:

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align the interests of management with the long-term interests of stockholders;

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design programs that are fiscally sound and maximize stockholder value;

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be equitable and reasonable;

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motivate management to maximize enterprise value and performance while focusing on targeted short- and long-term objectives;

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incorporate an increasing proportion of variable and at-risk compensation as levels of responsibility and the ability to affect company performance increase;

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provide increased long-term compensation compared to short-term compensation as levels of responsibility and the ability to affect company performance increase;

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provide increased rewards for outstanding performance; and

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avoid problematic pay practices such as tax gross-ups and compensation practices that encourage excessive or inappropriate risk taking.

Applying Our Compensation Philosophy

Prior to this offering, the company has been privately held by MacDermid Holdings, LLC. Accordingly, the company has not been subject to stock exchange listing rules or certain federal securities laws and regulations applicable to publicly traded companies, including those requiring that a majority of the Board be independent or regarding the formation and functioning of board committees, such as a compensation committee. As a result, all our prior compensation programs and determinations pertaining to the compensation of our named executive officers were the product of negotiations between our chief executive officer and the Board.

The Board has been responsible for, among other things, overseeing our compensation policies, plans and benefit programs, but management members of the Board have recused themselves from decisions pertaining to their own compensation.

In connection with this offering, we are reviewing our incentive plans and policies, and we may make changes to such plans and policies in connection with or following this offering.

Compensation Consultant

The non-management members of the Board, as a result of their roles at Court Square and Weston Presidio, have extensive experience designing compensation programs with respect to private equity portfolio companies. Our Board has relied primarily on this experience in determining the compensation paid to our named executive officers. In addition, the company has engaged an outside consulting firm, Hay Group, Inc. (“Hay”), to provide the company with its annual “Landscape” survey including a global summary of economic data as well as compensation-related information on a country-by-country basis. This information is used by management to prepare compensation proposals to the Board. The Board uses the information provided by Hay to review and analyze our named executive officers’ compensation. Hay does not have any other consulting engagements with our named executive officers or the Board.

Consistent with our flexible compensation philosophy, the Board retains discretion to make compensation determinations that vary from the recommendations provided by Hay and may also consider, among other factors: the requirements of any relevant employment agreements, a named executive officer’s individual performance during the year, his or her projected role and responsibilities for the coming year, his or her actual and potential impact on the successful execution of a company strategy or project, recommendations from our chief executive officer, a named executive officer’s prior compensation, experience and professional status, internal pay equity considerations and employment market conditions. The weighting of these and other relevant factors is determined on a case-by-case basis for each named executive officer upon consideration of the relevant facts and circumstances.

Elements of Compensation

The principal elements of total compensation paid to our named executive officers in 2010 were base salary, short-term cash incentive compensation and long-term incentive awards. We also provided our named executive officers with retirement benefits, health and welfare benefits, limited perquisites and severance benefits.

Balance of Components of Compensation

The Board determines the percentage mix of compensation components, with respect to both short- versus long-term compensation and cash versus equity compensation, that it considers appropriate for each of our named executive officers. This is not a mechanical process, and the Board uses its judgment and experience and works with our chief executive officer to determine the appropriate mix of compensation for each individual.

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2010 Compensation

Base Salary

We provide our named executive officers with a base salary to compensate them for services rendered during the fiscal year. At its February 2010 meeting, the Board reviewed and adjusted the base salaries of our named executive officers. In setting base salaries, the Board considered each named executive officer’s prior year base salary, the current economic environment and the base salaries of executives in comparable positions within the various private equity portfolio companies of Court Square and Weston Presidio, as well as market data supplied by Hay, as described above. The approved base salaries are listed in the Summary Compensation Table on page 108 of this prospectus.

Short-Term Cash Incentive Compensation

In 2010, our named executive officers were eligible to receive short-term cash incentive compensation under the company’s discretionary bonus plan (the “2010 Bonus Plan”). The 2010 Bonus Plan was designed to provide an opportunity for our named executive officers to earn additional annual cash compensation based on the Board’s subjective view of the overall financial performance of the company and the named executive officer’s individual performance.

At the beginning of 2010, the Board established a range of bonus award opportunities for each of our named executive officers, expressed as a percentage of base salary, that were designed to be indicative of the incentive payment that the named executive officer would expect to receive on the basis of strong financial performance of the company and individual performance. Each named executive officer’s range of bonus award opportunities is intended to serve as a non-binding guideline for the Board to use when making annual incentive payments. The Board may use its discretion to pay bonus amounts that are above or below each named executive officer’s range of bonus award opportunities.

The named executive officers’ range of bonus award opportunities were established by the Board after considering the recommendations of our chief executive officer, the prior year’s bonus award opportunities, the current economic environment and the bonus award opportunities of executives in comparable positions within the various private equity portfolio companies of Court Square and Weston Presidio, as well as market data supplied by Hay, as described above. Management members of the Board have recused themselves from decisions pertaining to their own compensation.

All annual incentive payments were discretionary. In applying its discretion, the Board took into account circumstances in which strong individual effort was demonstrated and in which the financial performance of the company was influenced due to factors outside of a named executive officer’s control. The named executive officers’ range of bonus award opportunities and bonus amounts earned in 2010, expressed as a percentage of base salary, are as follows (the actual bonus amounts were paid in March 2011 and are included in the “Bonus” column of the Summary Compensation Table on page 108 of this prospectus):


Named Executive Officer	2010 Bonus Opportunity Range			2010 Bonus Award
David H. Leever		0-200	%		192	%
Frank J. Monteiro		0-75	%		72	%
John L. Cordani		0-50	%		50	%
Michael V. Kennedy		0-50	%		45	%
Jerry A. Mitchell		0-50	%		51	%

Long-Term Incentive Awards

The company’s long-term incentive awards are designed to recognize individual and company performance in creating long-term stockholder value and to align our named executive officers’ focus and execution with our long-term success.

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There were no grants of long-term incentive awards to our named executive officers during 2008, 2009 or 2010. Instead, at the time of the Acquisition, our named executive officers were granted time-vesting membership interests (the “Class A Units”) and performance-vesting membership interest (the “Class B Units”) in MacDermid Holdings, LLC pursuant to the MacDermid Holdings LLC Equity Incentive Plan (the “EIP”). As is common in private equity acquisitions, the Board determined that granting all the equity awards at the time of the Acquisition, rather than annually, was necessary to promote retention of key leaders critical to the company’s success and to provide an equity incentive and stake in the company that directly aligns the long-term economic interests of the executives with those of the company’s other stockholders.

The grant of Class A Units and Class B Units was designed to compensate our named executive officers for their long-term commitment to the company, while motivating sustained increases in our financial performance. The relative mix of Class A Units and Class B Units that each named executive officer received was determined based on the named executive officer’s position within the company and potential impact on the company’s financial performance.

The Class A Units vest in equal increments of 20% on each of the first five anniversaries of the issue date, subject to our named executive officers’ continued employment. In the event the company undergoes a change of control on or prior to the fifth anniversary of the issue date, all the outstanding Class A Units will become vested.

As a result of adjustments made to the Class B Units in April 2011, the Class B Units vest in equal increments of 20% on each of March 31, 2011, 2012, 2013, 2014 and 2015, subject to our named executive officers’ continued employment and the company’s attainment of certain annual EBITDA performance vesting targets. The Class B Units were adjusted in April 2011 to take into consideration the divestitures and acquisitions by the company since 2007 and the difficult global economic conditions that began in 2009. EBITDA was chosen as the performance metric because it reflects sustained earnings and is a key driver of our valuation.

Due to the number of events that can occur within our industry in any given year that are beyond the control of management but may significantly impact our financial performance (e.g., regulatory developments, industry-wide technology changes, etc.), we have incorporated “catch-up” vesting provisions. The Class B Units that were eligible to vest on any vesting date (other than the final vesting date) but failed to vest due to our failure to achieve the applicable performance vesting target will vest on the immediately subsequent vesting date if the applicable performance vesting target is achieved with respect to such immediately subsequent vesting date.

In addition, in the event the company undergoes a change of control on or prior to March 31, 2015, any Class B Units that were eligible to vest on the vesting date in the year immediately preceding the year of the change of control but failed to vest due to our failure to achieve the applicable performance vesting target, as well as the Class B Units eligible to vest in the year of the change of control and all years following the year of the change of control, will vest on the date of the consummation of the change of control. However, such accelerated vesting of the Class B Units will only occur to the extent that holders of the preferred units, common units and Class A Units receive distributions in connection with the change of control which, when added to the aggregate distributions (if any) received by the holders of the preferred units, common units and Class A Units from distributions prior to such date, equal or exceed $1,000,000,000.

On the earlier of the final vesting date or the date of the consummation of a change of control, any Class B Units that have not vested will be forfeited and will cease to be outstanding.

Upon review of the company’s 2010 financial performance, the Board determined the company achieved the 2010 performance vesting target of $137 million of EBITDA; therefore, 20% of each named executive officer’s Class B Units vested as of March 31, 2011. The remaining 80% of each named executive officer’s Class B Units are unvested and may vest in the future depending on the company’s financial performance. Further, 20% of each named executive officer’s Class A Units vested on April 12, 2011, the fourth anniversary of the issue date. Twenty percent of the named executive officers’ original grant of Class A Units remains unvested.

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As part of the Corporate Reorganization, holders of the Class A Units and Class B Units will receive, upon the liquidation of MacDermid Holdings, LLC, restricted shares of our common stock which, pursuant to the Securityholders’ Agreement, will be subject to substantially identical vesting conditions as described above.

Following the Corporate Reorganization, no Class A Units or Class B Units will be outstanding.

We are evaluating our long-term incentive award strategy in connection with this offering and we may make changes to this strategy following this offering.

Retirement Benefits

We currently maintain the MacDermid, Incorporated Employees’ Pension Plan (the “Defined Benefit Plan”), a tax-qualified defined benefit pension plan designed to provide retirement benefits for eligible employees of the company. All our named executive officers currently participate in the Defined Benefit Plan. Messrs. Leever, Monteiro and Cordani also participate in the Supplemental Executive Retirement Plan (the “SERP”), a non-tax-qualified retirement plan maintained by the company that is designed to replace the amounts lost under the Defined Benefit Plan due to certain Internal Revenue Service limitations. The Board believes that these plans serve an important role in the retention of the named executive officers, as the benefits earned under them are based in part on number of years of service with the company.

In the event that a named executive officer is terminated for cause or enters into competition with the company within two years after the termination of his or her employment, all benefits under the SERP will be forfeited, unless the Board determines that such action was taken in the best interest of the company.

We also maintain the Savings Plan, a tax-qualified defined contribution plan designed to aid in retention and to assist employees in providing for their retirement. Each of our named executive officers participates in the Savings Plan. The company may make discretionary contributions to the Savings Plan, but there were no discretionary contributions made to the Savings Plan during the fiscal year ended December 31, 2010.

For additional information on the Defined Benefit Plan, the SERP and the Savings Plan, see the section titled “2010 Pension Benefits” on page 113 of this prospectus.

Benefits and Perquisites

Our named executive officers are eligible to participate in the benefit plans maintained for all domestic employees providing medical, dental, vision and disability benefits. These benefits are intended to be competitive with similar benefits offered in our industry.

The principal perquisites provided to our named executive officers in 2010 included life insurance coverage and, in the case of our chief executive officer, use of our corporate aircraft.

None of our named executive officers, other than our chief executive officer, may use our corporate aircraft for personal travel. Our chief executive officer may use our corporate aircraft for personal travel or in the case of personal emergency, provided that, in either case, he reimburses the company for the cost of such use. The chief executive officer’s immediate family members may accompany him on business travel.

Each named executive officer is provided life insurance coverage, paid by the company, in an amount equal to the product of two times the named executive officer’s base salary for the previous year. The policies are in the name of the executive with beneficiaries named by the executive.

For additional information regarding the perquisites refer to the column titled “All Other Compensation” in the Summary Compensation Table on page 108 of this prospectus.

Severance Agreements and Employment Agreements

We have entered into severance agreements with each of our named executive officers which provide for the payment of severance upon certain qualifying terminations. Our named executive officers other than Mr. Leever

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are entitled to receive an enhanced severance benefit in the event of an involuntary termination within two years following a change of control of the company. Mr. Leever is entitled to receive the same severance benefit upon a qualifying termination, regardless of whether a change of control has occurred. These terms and conditions are further explained in the section titled “Potential Payments upon Termination or Change of Control” on page 114 of this prospectus.

We believe the severance agreements are necessary to attract and retain the named executive officers required to lead the company through the Corporate Reorganization and this offering. By providing an enhanced severance benefit for certain executives in the event of an involuntary termination following a change of control, the agreements enable the executives to focus on the best interests of our stockholders during the critical time period surrounding a potential change of control, rather than on their own future employment prospects and financial security, and serve to ensure that our most important executives will not depart the company when their continued services are essential. Each severance arrangement with a named executive officer was approved by the Board. Management members of the Board have recused themselves from decisions pertaining to their own compensation.

Share Ownership Policy and Trading Restrictions

In contemplation of this offering, the company intends to establish an insider trading policy in order to promote compliance with applicable securities laws by the company and its directors and employees. In addition, the company intends to establish a share ownership policy that will require the named executive officers to retain a portion of their shares of the company’s securities for a minimum specified period of time.

Compensation Practices and Risk

We believe our material compensation programs balance an appropriate mix of short- and long-term performance objectives, elements of cash- and equity-based compensation and risks and rewards for our named executive officers. Our programs incorporate key design features to mitigate the likelihood of excessive risk taking behavior, including:

•

our Board retains ultimate discretion for payments made to our named executive officers under our short-term cash incentive program; and

•

a balance of performance- and time-based equity grants for our named executive officers, with performance-based awards measuring our performance over a multi-year period.

Additionally, we have a strong internal control environment and ethics and compliance training for all employees. Based on our review of compensation program design, we believe that significant risks are limited and our policies and practices do not create risks that are reasonably likely to have a material negative impact on our company.

Tax Considerations

Section 162(m) of the Internal Revenue Code limits the tax deductibility by a public company of compensation in excess of $1 million paid to certain of its most highly compensated executive officers. However, performance-based compensation that has been approved by stockholders is excluded from the $1 million limit if, among other requirements, the compensation is payable only upon attainment of pre-established, objective performance goals.

Historically, as a private company, the limitations of Section 162(m) have not been applicable to us. In the future, we anticipate that the compensation committee will consider the tax impact of all compensation arrangements in light of our overall compensation philosophy and objectives. However, there may be circumstances in which our and our stockholders’ interests are best served by providing compensation that is not fully deductible and our ability to exercise discretion outweighs the advantages of qualifying compensation under Section 162(m).

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COMPENSATION TABLES AND NARRATIVE DISCLOSURES

Summary Compensation Table

The following table summarizes the compensation of each of our named executive officers for the fiscal year ended December 31, 2010.


Name and Principal Position	Salary ($)(1)		Bonus ($)(2)		Stock Awards ($)		Non-Equity Incentive Plan Compensation ($)		Change in Pension Value and Nonqualified Deferred Compensation Earnings ($)(3)		All Other Compensation ($)(4)		Total ($)
Daniel H. Leever		754,167		1,450,000		—		—		274,764		4,158		2,483,089
Chairman and Chief Executive Officer

Frank J. Monteiro		243,562		175,500		—		—		23,505		541		443,108
Senior Vice President and Chief Financial Officer

John L. Cordani		295,210		149,050		—		—		94,523		878		539,661
Vice President, Corporate Secretary and General Counsel

Michael V. Kennedy		242,225		109,800		—		—		50,726		846		403,597
Treasurer and Director of Tax

Jerry A. Mitchell		177,154		90,000		—		—		13,754		590		281,498
Corporate Controller

(1)

Amounts disclosed in this column represent annual base salary, and include adjustments to our named executive officers’ base salaries made by the Board at its February 2010 meeting. These adjustments were applied retroactively to January 2010. These amounts are not reduced to reflect the named executive officers’ elections to defer receipt of salary under the Savings Plan.

(2)

Amounts disclosed in this column were earned under the 2010 Bonus Plan and paid in March 2011. These amounts are not reduced to reflect the named executive officers’ elections to defer receipt of salary under the Savings Plan. For additional information regarding the Bonus Plan refer to “2010 Compensation—Short-Term Cash Incentive Compensation” in the Compensation Discussion and Analysis on page 104 of this prospectus.

(3)

Amounts disclosed in this column represent the aggregate increase in actuarial present value to our named executive officers of the Defined Benefit Plan and the SERP. Assumptions used to calculate these figures are provided under the table titled “2010 Pension Benefits” on page 113 of this prospectus. The changes in the Defined Benefit Plan and SERP benefit values during 2010 were impacted mainly by: (i) the passage of time which reflects another year of pay and service plus actual investment return and (ii) the discount rate changing from 6.00% to 5.70%, which resulted in an increase in value. The impact of these events on the Defined Benefit Plan and SERP benefit values was as follows:


Named Executive Officer	Defined Benefit Plan (S)		SERP ($)
Daniel H. Leever		77,316		197,448
Frank J. Monteiro		31,473		(7,968	)
John L. Cordani		70,971		23,552
Michael V. Kennedy		50,726		—
Jerry A. Mitchell		13,754		—

(4)	Amounts disclosed in this column represent premiums paid on behalf of our named executive officers for a company-sponsored life insurance program.

108

Narrative Disclosure to Summary Compensation Table

The following describes material features of the compensation disclosed in the Summary Compensation Table.

Class A Units and Class B Units

The membership interests in MacDermid Holdings, LLC are divided into four classes of interests consisting of the preferred units, the common units, the Class A Units and the Class B Units. None of the interests have been registered under the Securities Act or the securities laws of any state and cannot be sold, assigned, transferred, exchanged or otherwise disposed of except in compliance with the terms of the agreement among the securityholders’ of MacDermid Holdings, LLC (the “Holdings Securityholders’ Agreement”). Pursuant to the Holdings Securityholders’ Agreement, prior to an initial public offering of MacDermid Holdings, LLC, a holder of Class A Units and Class B Units may only transfer his or her interests as part of another member’s negotiated sale of its interests pursuant to customary “tag along” rights. In addition, a holder of Class A Units and Class B Units may be forced to sell his or her interests on terms similar to those agreed to by other selling members pursuant to customary “drag along” rights.

As a result of adjustments made to the Class B Units in April, 2011, the Class B Units vest in equal increments of 20% on each of March 31, 2011, 2012, 2013, 2014 and 2015, subject to our named executive officers’ continued employment and the company’s attainment of certain annual EBITDA performance vesting targets. The Class B Units were adjusted in April 2011 to take into consideration the divestitures and acquisitions by the company since 2007 and the difficult global economic conditions that began in 2009. In addition, the Class B Units that were eligible to vest on any vesting date (other than the final vesting date) but failed to vest due to our failure to achieve the applicable performance vesting target will vest on the immediately subsequent vesting date if the applicable performance vesting target is achieved with respect to such immediately subsequent vesting date.

On the earlier of the final vesting date or the date of the consummation of a change of control, any Class B Units that have not vested will be forfeited and will cease to be outstanding.

No capital contributions are required to be made by a holder of Class A Units or Class B Units upon issuance. The Class A Units and the Class B Units are intended to constitute a “profits interest” in the company for tax purposes. Subject to the restrictions in the Holdings Securityholders’ Agreement, holders of vested Class A Units and vested Class B Units have a general right to vote for all purposes, including the election of directors of the board of directors of MacDermid Holdings, LLC, as a single class together with the holders of vested common units.

109

Distributions to the members of MacDermid Holdings, LLC of the cash or other assets of MacDermid Holdings, LLC are made only at such times and in such amounts as authorized in the Holdings Securityholders’ Agreement. The board of directors of MacDermid Holdings, LLC has no obligation or duty to authorize any distributions prior to a dissolution or liquidation of MacDermid Holdings, LLC.

Pursuant to the Holdings Securityholders’ Agreement and in connection with the liquidation of MacDermid Holdings, LLC as part of the Corporate Reorganization, the holders of Class A Units and Class B Units will participate with the holders of common units, as a group, in the distribution of the shares of our common stock then held by MacDermid Holdings, LLC that remain after (i) the holders of preferred units receive an amount equal to the aggregate unpaid yield and unreturned original cost of the outstanding preferred units and (ii) the holders of common units receive an amount equal to the aggregate common preference and unreturned original cost of the common units. The shares of our common stock distributed to holders of Class A Units and Class B Units as part of the Corporate Reorganization will be subject to substantially identical vesting conditions as those described above. Following the Corporate Reorganization, no Class A Units or Class B Units will be outstanding.

2010 Outstanding Equity Awards at Fiscal Year End

The following table sets forth information concerning our named executive officers’ outstanding equity awards as of December 31, 2010.


	Stock Awards
Name	Number of Shares or Units of Stock That Have Not Vested			Market Value of Shares or Units of Stock That Have Not Vested(3)	Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested	Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested
		A(1)	B(2)
Daniel H. Leever		86,000	207,360	$
Frank J. Monteiro		16,125	59,840	$
John L. Cordani		8,600	17,600	$
Michael V. Kennedy		1,892	7,360	$
Jerry A. Mitchell		946	7,360	$

(1)

The Class A Units vest in equal increments of 20% on each of the first five anniversaries of the issue date, subject to our named executive officers’ continued employment. Amounts disclosed in this column represent the remaining 20% of each named executive officer’s original grant of Class A Units that remain unvested. In the event the company undergoes a change of control on or prior to the fifth anniversary of the issue date, all the outstanding Class A Units will become vested. For additional information regarding the Class A Units refer to the section titled “2010 Compensation—Long-Term Incentive Awards” on page 104 of this prospectus and the narrative disclosure following the Summary Compensation Table beginning on page 109 of this prospectus. As part of the Corporate Reorganization, holders of the Class A Units will receive, upon the liquidation of MacDermid Holdings, LLC, restricted shares of our common stock, which will be subject to substantially identical vesting conditions. Following the Corporate Reorganization, no Class A Units will be outstanding.

(2)

As a result of adjustments made to the Class B Units in April 2011, the Class B Units vest in equal increments of 20% on each of March 31, 2011, 2012, 2013, 2014 and 2015, subject to our named executive officers’ continued employment and the company’s attainment of certain annual EBITDA performance vesting targets. The Class B Units were adjusted in April 2011 to take into consideration the divestitures and acquisitions by the company since 2007 and the difficult global economic conditions that began in 2009. In addition, the Class B Units that were eligible to vest on any vesting date (other than the final vesting date) but failed to vest due to our failure to achieve the applicable performance vesting target will vest on the

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immediately subsequent vesting date if the applicable performance vesting target is achieved with respect to such immediately subsequent vesting date. Amounts disclosed in this column represent the 80% of each named executive officers’ Class B Units that are unvested and may vest in the future depending on the Company’s financial performance.

In the event the company undergoes a change of control on or prior to March 31, 2015, any Class B Units that were eligible to vest on the vesting date in the year immediately preceding the year of the change of control but failed to vest due to our failure to achieve the applicable performance vesting target, as well as the Class B Units eligible to vest in the year of the change of control and all years following the year of the change of control, will vest on the date of the consummation of the change of control. However, such accelerated vesting of the Class B Units will only occur to the extent that holders of the preferred units, common units and Class A Units receive distributions in connection with the change of control which, when added to the aggregate distribution (if any) received by the holders of the preferred units, common units and Class A Units from distributions prior to such date, equal or exceed $1,000,000,000. On the earlier of the final vesting date or the date of the consummation of a change of control, any Class B Units that have not vested will be forfeited and will cease to be outstanding. For additional information regarding the Class B Units refer to the section titled “2010 Compensation—Long-Term Incentive Awards” on page 104 of this prospectus and the section narrative disclosure following the Summary Compensation Table beginning on page 109 of this prospectus. As part of the Corporate Reorganization, holders of the Class B Units will receive, upon the liquidation of MacDermid Holdings, LLC, restricted shares of our common stock, which will be subject to substantially identical vesting conditions. Following the Corporate Reorganization, no Class B Units will be outstanding.

(3)

As noted above, as part of the Corporate Reorganization, holders of the Class A Units and Class B Units will receive, upon the liquidation of MacDermid Holdings, LLC, restricted shares of our common stock which, pursuant to the Securityholders’ Agreement, will be subject to substantially identical vesting conditions as described above. Following the Corporate Reorganization, no Class A Units or Class B Units will be outstanding.

2010 Option Exercises and Stock Vested

The following table sets forth information concerning stock vesting during the fiscal year ending December 31, 2010 for each named executive officer.


	Option Awards		Stock Awards
Name	Number of Shares Acquired on Exercise	Value Realized on Exercise	Number of Shares Acquired on Vesting			Value Realized on Vesting (3)
				A(1)	B(2)
Daniel H. Leever				86,000	51,840	$
Frank J. Monteiro				16,125	14,960	$
John L. Cordani				8,600	4,400	$
Michael V. Kennedy				1,892	1,840	$
Jerry A. Mitchell				946	1,840	$

(1)	The Class A Units vest in equal increments of 20% on each of the first five anniversaries of the issue date, subject to our named executive officers’ continued employment. Amounts disclosed in this column

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represent the 20% of each named executive officer’s original grant of Class A Units that vested on April 12, 2011, the fourth anniversary of the issue date. In the event the company undergoes a change of control on or prior to the fifth anniversary of the issue date, all the outstanding Class A Units will become vested. For additional information regarding the Class A Units refer to the section titled “2010 Compensation—Long-Term Incentive Awards” on page 104 of this prospectus and the section narrative disclosure following the Summary Compensation Table beginning on page 109 of this prospectus. As part of the Corporate Reorganization, holders of the Class A Units will receive, upon the liquidation of MacDermid Holdings, LLC, restricted shares of our common stock, which will be subject to substantially identical vesting conditions. Following the Corporate Reorganization, no Class A Units will be outstanding.

(2)

(3)

The amounts in this column represent the market value of the Class A Units and Class B Units disclosed in the previous column based on the value of one share of company stock on the date of this offering at an initial public offering price of $ , the midpoint of the price range on the cover of this prospectus. A public market for the Class A Units and the Class B Units did not exist as of December 31, 2010 and all of the Class A Units and the Class B Units were subject to transfer restrictions as of December 31, 2010, as described in the narrative disclosure following the Summary Compensation Table beginning on page 109 of this prospectus. As noted above, as part of the Corporate Reorganization, holders of Class A Units and Class B Units will receive, upon the liquidation of MacDermid Holdings, LLC, restricted shares of our common stock which, pursuant to the Securityholders’ Agreement, will be subject to substantially similar vesting conditions as described above.

112

2010 Pension Benefits

The following table sets forth certain information concerning the pension benefits, as of December 31, 2010, for our named executive officers. Amounts shown in this table are estimates only; actual benefits will be based on pay and service at the time of the named executive officer’s retirement.

Name

Plan Name

Number of
Years
Credited
Service (#)

Present Value
of Accumulated
Benefit ($)

Payments
During Last
Fiscal Year ($)

Daniel H. Leever

Defined Benefit Plan(1)(2)

29.5

1,084,150

—

MacDermid Group Inc. S-1