Nordson's Unit Acquires PCP Product Line Of Infiniti Dosing
Zacks Investment Research | Jan 08, 2018 08:59PM ET
Nordson Corporation’s (NASDAQ:NDSN) subsidiary — Nordson ASYMTEK — yesterday announced that it has added the progressive cavity pump (PCP) product lines of Germany-based Infiniti Dosing o.m.s. to its portfolio. As noted, the buyout was completed on Jan 5.
Financial consideration of the acquisition was not disclosed.
Nordson ASYMTEK is known globally for its equipment and technologies required in automated fluid dispensing, jetting and conformal coating. Prime end markets served include 3D packaging & wafer-level packaging, alternative energy, camera module assembly, case & package assembly, electro-mechanical, hard disk drive, life science, semiconductor packaging, printed circuit board assembly and others. It was founded in 1983.
Benefits From the Buyout
The buyout has provided Nordson access to Infiniti Dosing’s Dot Streamer and Accura brands. Through these well-known brands, the precision dispensing equipment manufacturer, will be able to expand its reach in the dispensing and dosing markets. Strongly complementing the company’s existing jetting technology, the PCP technology will make possible micro-dispensing of materials like solder pastes, MS polymers, epoxy resins, potting compounds, sealants, silicones and conductive adhesives for electronics applications.
The acquired assets of Infiniti Dosing will be part of Nordson’s Advanced Technology Systems segment.
Inorganic Initiatives Fuel Growth
Over time, Nordson has been capitalizing on its acquired assets by penetrating into unexplored markets and expanding its product lines. In this regard, buyouts of ACE Production Technologies, Inc. in January 2017, Plas-Pak Industries, Inc. and InterSelect GmbH in February and Advanced Technologies business of Vention Medical in March are worth mentioning. In January 2018, the company acquired Sonoscan. All these assets have strengthened its businesses under Advanced Technology Systems segment. ACE Production Technologies and InterSelect are projected to deliver mid-to-high single digit growth over the next several years.
Notably, benefits from the acquired assets have added 10% and 7% to Nordson’s revenue growth in fiscal fourth quarter and fiscal 2017, respectively. It anticipates acquired assets to contribute approximately 11% to sales growth in the first quarter of fiscal 2018. In addition, organic volume increase will strengthen sales by 15-19% while foreign currency movements will add 4%, bringing total revenue growth in the range of 30-34%.
Market sentiments have been positive for Nordson in the last three months. The company’s shares have yielded 23.2% return, outperforming 7.5% gain of the Zacks Investment Research
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