Publicly traded Nordson has agreed to sell its the screws and barrels (S&B) product line, part of its polymer processing systems division, to Altair Investments.
The S&B business manufactures screws and barrels that are used in plastic injection and extrusion machinery by plastics processors and equipment OEMs. S&B has over $70 million in annual revenues and has more than 500 employees.
The S&B business is part of Nordson’s polymer processing systems which was acquired through the 2012 acquisition of Xaloy, a New Castle, Pennsylvania-based manufacturer of plastic injection molding and extrusion machinery, for $200 million.
Nordson (NASDAQ: NDSN) manufactures products and systems that are used for the precision dispensing of adhesives, coatings, sealants, biomaterials, polymers, plastics and other materials; for UV curing and plasma surface treatments; and for testing and inspection. The company’s products are used in a wide variety of product assembly and finishing applications in the packaging, electronics, medical, appliances, energy, transportation, and construction sectors. Nordson, led by CEO Sundaram Nagarajan, was founded in 1954 by the Nord family and is headquartered near Cleveland in Westlake, Ohio.
According to Nordson, the S&B business no longer fits with its strategic plan which is now focused on other precision technologies. “This strategic portfolio transaction will improve the company’s ongoing earnings and require a one-time, non-cash asset impairment charge of approximately $87 million,” said CFO Joseph Kelley. “This action underscores our commitment to align and focus our resources with the best strategic opportunities for long-term profitable growth.”
Altair
makes control investments in companies that have revenues of more than $10 million and EBITDA from $2 million to $10 million. Typical enterprise values range from $2 million to $50 million. Sectors of interest include financial and business services; consumer, retail and dining; distribution and logistics; industrial, manufacturing and energy; technology, media and telecom; and healthcare. The firm was founded in 2019 and is headquartered north of Dallas in Frisco, Texas.
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