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Nordson (NDSN) Acquires Germany-Based Optical Control GmbH

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Nordson Corporation (NDSN - Free Report) recently announced that it has acquired Optical Control GmbH. Notably, the transaction is in sync with the company’s strategy to strengthen its Test and Inspectioncapabilities. The financial terms of the deal were kept under wraps.

Nuremberg-based Optical Control is a developer of high speed, fully automatic counting systems with the help of X-ray technology. Notably, the company supplies automatic counting of components for strips, reels and trays along with basic inspection in printed circuit board manufacturing.

This acquisition will augment Nordson Electronic Solutions product lines under the company’s Advanced Technology Systems segment. This will allow Nordson to diversify and expand the range of solutions it offers to its electronics customers.

Our Take

Nordson stands to benefit from its diversified product portfolio and large customer base in the packaging, nonwovens, electronics, medical, appliances, energy, transportation, building and construction, and general product assembly and finishing industries. Notably, the company anticipates strengthening end markets and growth initiatives to aid organic sales in fiscal 2019 (ending October 2019).

However, rising costs and expenses have been a major concern for Nordson. It is worth mentioning here that the company recorded 1.2% year-over-year growth in cost of sales in the second quarter of fiscal 2019. (ended Apr 30, 2019). If unchecked, higher costs and operating expenses will prove detrimental to its margins and profitability.



In the past month, shares of the Zacks Rank #3 (Hold) company have returned 8.2%, outperforming the industry’s average growth of 6%.

Key Picks

Some better-ranked stocks in the same space are Roper Technologies, Inc. (ROP - Free Report) , RBC Bearings Incorporated and Chart Industries, Inc. (GTLS - Free Report) . While Roper sports a Zacks Rank #1 (Strong Buy), RBC Bearings and Chart Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Roper exceeded estimates in each of the trailing four quarters, the average beat being 8.43%.

RBC Bearings surpassed estimates in each of the trailing four quarters, the average beat being 8.36%.

Chart Industries surpassed estimates thrice in the trailing four quarters, the average beat being 16.56%.

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