Nordson to buy Verbruggen to tap global flexible packaging potential
The US-based firm said it expected to close the deal for Verbruggen NV, which manufactures flat dies and coextrusion equipment for the multi-layer flexible packaging industry, within the next few days.
No financial details were available and Nordson said it does not expect the acquisition to make it money in the first full year of operation.
Global flexible packaging potential
But the US firm, a major producer of precision dispensing equipment that applies adhesives, sealants, powder and liquid coatings, said the deal would allow it to tap into huge projected growth in the global flexible packaging market.
According to Euromonitor International, flexible packaging experienced a 3 per cent growth in 2010. This equated to a unit volume boost of around 29 billion units, almost five times its nearest rival liquid packaging at 6 billion unit growth.
The Belgian outfit, which employs 40 workers and is based in Temse, is projected to produce sales reaching €8m in the current financial year.
Verbruggen will operate as part of its Adhesive Dispensing Systems arms, confirmed the US company.
Market entry
“Verbruggen provides Nordson an excellent entry into the flexible packaging market, and it is a natural complement to our existing leadership position in rigid packaging applications,” said Nordson president and CEO Michael F. Hilton.
He hailed what he called Verbruggen’s “strategic place in the packaging supply chain, providing key value-added equipment to OEMS”.
“The combination of Nordson’s global footprint and Verbruggen’s differentiated technology will enable us to capture multiple new opportunities as flexible packaging continues to grow worldwide,” added the company chief.
