) acquired the California-based Avalon Laboratories Holding Corp.,
to expand presence in the medical markets through its
fluid-management capabilities. Avalon Laboratories is a leading
manufacturer of catheters and medical tubing products for
cardiology, pulmonology and related applications. The acquisition,
valued at $180 million, was funded through the company's existing
The acquisition is expected to be accretive to Nordson's
earnings from its first full year of operation. Avalon Laboratories
complements Nordson's existing lines of highly engineered,
single-use plastic components, used for fluid management in medical
applications. Founded in 1990, Avalon Laboratories is well known
for its proprietary Polymer Solution Casting manufacturing
technology which enables production of seamless one-piece tubing in
complex geometric designs having varying wall thicknesses.
Avalon Laboratories will presently operate as part of Nordson's
Advanced Technology Systems segment. The company has two facilities
located at California and Mexico. All 400 employees of Avalon
laboratories will now work under Nordson Corporation.
Nordson is expected to disclose more details about the
acquisition when it releases its fiscal third-quarter 2014 (ended
Jul 31, 2014) on Aug 21. The Zacks Consensus Estimate for the same
stands at $1.13 per share, reflecting a year over year hike of
With a market capitalization of $4.9 billion, Nordson holds a
Zacks Rank #3 (Hold). Some better-ranked stocks in the industry
include Blount International Inc. (
), DXP Enterprises, Inc. (
) and IDEX Corporation (
). While Blount International sports a Zacks Rank #1 (Strong Buy),
DXP Enterprises and IDEX Corporation hold a Zacks Rank #2
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