Nordson Corporation has acquired EDI (Extrusion Die Industries) Holdings for US$200m and described it as a “clear fit with our strategy of acquiring companies that provide differentiated precision technology.”
Nordson Corporation produces hot melt adhesive dispensing equipment for rigid packaging and EDI Holdings provides slot coating and flat polymer extrusion dies for plastic processors and web converters.
Subject to regulatory approval
The purchase price is subject to adjustment as provided in the purchase agreement and the deal is expected to close during the Ohio-based firm’s third quarter pending closing conditions and regulatory reviews.
Wisconsin-based EDI has operations in the US, Germany and China, and will operate as part of Nordson's adhesive dispensing systems segment.
James R. Jaye, director of communications and investor relations, told FoodProductionDaily.com the market for sheets, barrier films and coatings in food and beverage will provide solid growth opportunities for years to come.
“The timing of any acquisition relies on the alignment of multiple factors from both parties.
“Market trends over the long term are very positive with demand in emerging markets in particular growing at a rapid pace.
“Overall, the market is increasingly demanding sophisticated technology and global service, both of which Nordson and EDI are known for.”
The company added EDI's customer relationships and installed product base provided recurring revenue opportunities, including upgrades, replacements, or maintenance to existing products.
Opportunity for growth
“EDI’s position in the flexible packaging market is complementary to Nordson’s existing business and offers multiple opportunities for growth,” explained Jaye.
“Along with our Verbruggen acquisition of 2011, EDI will give Nordson a platform in the flexible packaging market with scale, product breadth and geographic reach.
“Nordson is a company that grows in part by acquiring companies that are strong performers with superior technology and differentiated products.
“Nordson looks forward to providing investments and additional support, that will help drive the continued success and expansion of EDI.”
The acquisition includes Premier Dies Corporation, a provider of slot coating and flat polymer extrusion dies, bought by EDI Holdings in March this year.
Jaye added: “Nordson’s organic growth is driven by leading technology, best in class service and a global footprint.
“We supplement this organic growth acquire by acquiring strong performing businesses with similar characteristics, like EDI.
“Overall, acquisitions are and will remain an important part of our growth plans going forward in all of our businesses.”