The acquisition expands the product portfolio to include pelletizers, a component in polymer compounding, recycling and related processes, as well as adding to Nordson’s existing business.
The whole agreement includes Münster, Germany based Kreyenborg Group's Kreyenborg and BKG Bruckmann & Kreyenborg Granuliertechnik companies.
The acquired companies employ 270 people, have operations in Shanghai, China, Kuala Lumpur, Malaysia and Georgia, USA, and will operate as part of Nordson's Adhesive Dispensing Systems segment.
Expands existing business
Nordson said it adds to existing offering in plastic extrusion area (which is largely flexible packaging), and expands Nordson Xaloy’s current offering in screen changers (filters) and melt pumps.
Nordson will acquire the companies and certain assets on a cash-free and debt-free basis for an aggregate purchase price of €135m, subject to certain adjustments and is expected to close in Q4 of the firm’s fiscal year.
Several customers are shared presenting multiple opportunities for leverage, including BASF, DuPont, Krauss Maffei, Bruckner and Davis Standard.
The acquired companies broaden Nordson's existing offering of screen changers, pumps and valves, critical components in the polymer processing melt stream for extrusion processes.
Flexible packaging role
Each product plays an integral role in the production of flexible packaging materials with screen changers filtering molten plastic (the “melt”) emerging from the system screw and barrel.
Melt pumps pump the melt onward downstream toward the feed block and extrusion die, explained Nordson.
Pelletizers compress or mold polymer materials into the shape of pellets. The pellets are fed into a screw and barrel to be melted at the beginning of the plastic melt stream process.
"These businesses are highly complementary to our other recent acquisitions in the polymer processing space and fit our strategy of providing our customers with high value, mission-critical melt stream components that will enhance the performance of their systems," said Michael F. Hilton, Nordson president and CEO.
"These businesses also immediately strengthen our relationships with key European OEM customers, deepen and expand our product offering, enhance our overall application expertise, expand our addressable market, and add recurring revenue opportunities to the portfolio.”