Value Plastics to operate as part of Nordson’s Advanced Technology Systems segment.
July 25, 2011
by Canadian Packaging Staff
Nordson Corporation, headquartered in Westlake, OH, has announced it has entered into a definitive agreement to acquire Value Plastics, Inc., with the deal expected to close in Nordson’s Q4.
Headquartered in Fort Collins, Colorado, Value Plastics employs approximately 75 people and is a leading designer and manufacturer of precision engineered, plastic molded, single-use fluid connection components used primarily in critical flow control applications for healthcare and medical device markets.
Says Nordson president and chief executive officer Michael F. Hilton: “Value Plastics has generated outstanding growth over an extended period by providing differentiated, single-use, precision molded plastic components that are delivered through a highly efficient sales process and supported by exceptional customer service. This model represents the same highly successful approach that we employ within our Nordson EFD product line today.
“In addition, Value Plastics supports Nordson’s strategic objective of building upon our medical and life sciences platform and complements our existing growing positions in biomaterial delivery devices and medical device assembly. Value Plastics is an ideal addition to the Nordson portfolio, where our global reach and infrastructure will provide opportunities to leverage the business’ profitable growth beyond its primary domestic markets served and into general industrial markets.
“In line with this strategy, Value Plastics will operate as part of Nordson’s Advanced Technology Systems segment, which operates on a global basis.”
The $250-million purchase price, subject to adjustment as provided in the purchase agreement, will be financed with availability under an existing $400 million revolving credit facility. The transaction is expected to be accretive to Nordson’s earnings in the first full year of acquisition.
Value Plastics’ product line includes quick connect fittings, luer fittings, check valves, tube-to-tube fittings, threaded fittings and blood pressure monitoring components. These products are generally low dollar cost, high value-add, mission-critical components of the larger systems they enable.
Major applications for these products include general insufflation, irrigation and aspiration sets, single-use container systems, anesthesia, cardiovascular surgery, ophthalmic surgery, cataract surgery and blood management.
Nordson has also made another purchase of a company – a Belgian manufacturer of flexible packaging equipment: READ.
For more information on the transaction, visit www.nordson.com/investors.
Nordson is one of the world’s leading producers of precision dispensing equipment that applies adhesives, sealants, coatings and other materials to a broad range of consumer and industrial products during manufacturing operations. The company also manufactures equipment used in the testing and inspection of electronic components as well as technology-based systems for curing and surface treatment processes. Headquartered in Westlake, Ohio, Nordson has direct operations and sales support offices in more than 30 countries. For more information on Nordson, visit www.nordson.com.