Nordson Corporation has announced the acquisition of Xaloy Superior Holdings for US$200m (€161m) just weeks after agreeing a deal to buy Extrusion Die Industries (EDI) Industries for the same price.
The price, subject to adjustment in the final agreement, is expected to close in Ohio-headquartered Nordson’s third quarter, pending regulatory review.
Pennslyvania-based Xaloy, a manufacturer of melt delivering components for injection and extrusion machinery in the plastic processing industry, has operations in the US, Germany and Thailand.
The company serves these markets with product lines including bi-metallic barrels, engineered screws, melt pumps, screen changers, heat transfer rolls, valves and nozzles, jet cleaners and pelletizers.
These products benefit the processing stages in which plastic resin is converted from solid pellets into a liquid “melt” and ultimately extruded through a die or injected into a mould to produce a finished good.
Same segment as EDI
Xaloy will operate as part of Nordson’s adhesive dispensing systems segment, the same as EDI Industries.
Nordson said demand for plastic end products produced by Xaloy is driven by multiple factors such as ongoing population growth, particularly in emerging markets, and material conversion trends.
Nordson president and CEO Michael F. Hilton said: “Like Nordson, Xaloy delivers products and systems that perform mission-critical functions which maximize uptime, throughput, end-product quality and overall process performance, ultimately resulting in enhanced customer profitability.
“Xaloy’s comprehensive product range allows it to provide customers with an integrated solution that spans the entire plastic processing melt stream.
“By adding this capability to our recent extrusion die product line acquisitions, Nordson now brings the industry a truly unique offering that combines the critical elements of both material flow and dispensing,” he added.
“This offering is analogous and complementary to the same highly successful model Nordson employs today within its hot melt adhesive dispensing product line for rigid packaging manufacturers.”
The news follows the acquisition of Extrusion Die Industries (EDI), which is also subject to regulatory approval and expected to close within the firm’s third quarter.
Last month, James R. Jaye, director of communications and investor relations at Nordson, told FoodProductionDaily.com 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, acquisitions are and will remain an important part of our growth plans going forward in all of our businesses.”