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Nordson Adds German Polymer Assets

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Nordson Corporation (NDSN - Free Report) made strategic acquisitions announcement that will enable the company to strengthen its operations in Germany. Financial terms of the transactions have not been made public.

The acquisition agreement deals with the polymers processing companies of Kreyenborg Group, including Kreyenborg GmbH and BKG Bruckmann & Kreyenborg Granuliertechnik GmbH companies. Kreyenborg Group is a well renowned company based in Munster, Germany.

The acquired companies will add roughly Euro 62 million in revenue generation capacity to Nordson as well as provide easy access to their client base in Germany, China, Malaysia and USA.

These companies are expected to be integrated with Nordson’s Adhesive Dispensing Systems segment and be accretive to earnings in the initial full year of operations. Subject to closing conditions and regulatory approvals, completion of the transaction is anticipated in 60 days.

Acquisition is one of the preferred ways of expansion for Nordson and this has proved advantageous for the company over time. The company’s revenue rose by 16% in the second quarter of fiscal 2013 (ended Apr 30) and by roughly 17% in the first half of fiscal 2013 due to assets acquired in the past. For the third quarter, revenue is anticipated to increase 7% due to the first year effect of acquisitions.

Nordson Corporation currently has a $4.8 billion market capitalization. The stock currently has a Zacks Rank #5 (Strong Sell). Other stocks to watch out for are Chart Industries Inc. (GTLS - Free Report) , Gardner Denver Inc. (GDI - Free Report) and Applied Industrial Technologies, Inc. (AIT - Free Report) .

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