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Nordson to sell screw/barrel product line to Altair Investments

Nordson to sell screw/barrel product line to Altair Investments

US firm Nordson Corporation is divesting its screws and barrels product line from its polymer processing systems (PPS) division to Altair Investments. Nordson adds that this divestiture represents a portfolio realignment consistent with its strategy to drive profitable growth through highly differentiated products serving attractive end markets.

Terms were not disclosed but Nordson expects the portfolio transaction to improve the company’s ongoing earnings and require a one-time, non-cash asset impairment charge of approximately US$87 million. “This action underscores our commitment to align and focus our resources with the best strategic opportunities for long-term profitable growth,” the company added.

Generating over US$70 million in annual revenue with 500 employees, this global product line has been reported in Nordson’s Industrial Precision Solutions segment. Nordson and Altair anticipate closing the transaction in the first quarter of fiscal 2021. The firms add that they will work collectively to ensure a smooth transition with no disruption to customer service and support.

Sundaram Nagarajan, Nordson President/CEO, said, “Using NBS Next, Nordson’s growth framework, we are focusing our resources on precision technology solutions that will deliver profitable growth for the company. Our screws and barrels product line is a respected market leader in the polymer processing industry. While this product line no longer fits Nordson’s strategic focus, we believe it will do well with Altair. I want to personally thank the employees, who support this product line, for their contributions to Nordson and wish them success in their future with Altair.”

Altair Investments Inc. is a Chicago-based private equity firm focused on investing in niche manufacturing companies in the lower middle market.

Nordson Corporation engineers, manufactures and markets differentiated products and systems used for the precision dispensing of adhesives, coatings, sealants, biomaterials, polymers, plastics and other materials, fluid management, test and inspection, UV curing and plasma surface treatment. It serves a wide variety of consumer non-durable, durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing. Founded in 1954 and headquartered in Westlake, Ohio, the company has operations and support offices in more than 35 countries.


(IMA)


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