Nordson to Acquire EDI Holdings
Nordson Corp. recently announced it has entered into a definitive agreement to acquire EDI Holdings Inc. (Extrusion Die Industries), a leading provider of slot coating and flat polymer extrusion dies for plastic processors and web converters. The $200 million purchase price, subject to adjustment as provided in the purchase agreement, will be financed with availability under an existing $500 million revolving credit facility. The transaction is expected to close during Nordson’s third quarter, pending customary closing conditions and regulatory reviews.
“EDI participates in the large and growing global plastics processing equipment industry, and is a clear fit with our strategy of acquiring companies that provide differentiated precision technology at a key part in the supply chain to deliver profitable long-term growth,” said Michael F. Hilton, president and CEO of Nordson. “Much like Nordson, EDI provides industry-leading products that are critical enabling technologies for end users to optimize productivity and uptime, yet these products are a relatively small portion of the total extrusion systems and coating lines on which they operate. EDI’s strong customer relationships and installed product base also provide multiple recurring revenue opportunities, including upgrades, replacements, or maintenance to existing products. In addition, EDI complements Nordson’s existing extrusion die product line, providing scale, product breadth and geographic reach to the Verbruggen platform.”