) 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,
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
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.
Gardner Denver Inc.
Applied Industrial Technologies, Inc.
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NORDSON CORP (NDSN): Free Stock Analysis
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