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The Deal: Nordson Acquires 2 German Polymer Processors

NEW YORK ( The Deal) -- Nordson (NDSN - Get Report) acquired two polymer processing companies from Germany's Kreyenborg Group for a total of 135 million euros ($176.5 million), according to a July 18 regulatory filing with the Securities and Exchange Commission.

The two German companies Nordson acquired are Munster-based Kreyenborg and BKG Bruckmann & Kreyenborg Granuliertechnik, according to the July 16 SEC filing. Jones Day LLP served as Nordson's legal counsel. The acquirer didn't engage financial advisors for the transaction.

Headquartered in Westlake, Ohio, Nordson manufactures and distributes screen chargers, valves, pumps and components for processing polymers. Both the German companies are involved in the production of special polymers. The acquisition of the German companies will extend Nordson's business into pelletizers production, a component used in polymer recycling. The deal also will extend Nordson's footprint to the Asian markets of Shanghai and Kuala Lumpur, Malaysia.

"These businesses are highly complementary to our other recent acquisitions in the polymer processing space and fit our strategy," Nordson President and CEO Michael F. Hilton said in a statement on Thursday, July 18.

Over the past year, Nordson has strengthened its hold in the polymer market by seeking strategic add-ons. Nearly a year ago, on July 21, it purchased New Castle, Pa.-based Xaloy Superior Holdings Inc. for $200 million. Xaloy is involved in the production of melt delivery components used in plastic processing.

Before that deal, Nordson on May 21, 2012, purchased Chippewa Falls, Wisc.-based EDI Holdings Inc. for $200 million. EDI is involved in the manufacture of polymers used for plastic processors and web converters.

Nordson, which posted a 21% increase in sales to $382 million in the second quarter, ended April 30, compared to $315.193 million for the same period last year, will continue to pursue its growth strategy through bolt-on acquisitions, according to Scott Wilbum, a Nordson spokesman. Wilbum confirmed by email that the company will "continue to evaluate opportunities" for expansion.

Nordson in the second quarter had $54.6 million in net income, a 4.7% increase over the $52.1 million it had in the same year-ago period. Nordson's $82 million in operating profits in the second quarter was 6.7% more than the $76.8 million in the same period a year ago.
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