Jul 20 2011
Nordson Corporation (Nasdaq: NDSN) today announced it has entered into a definitive agreement to acquire Value Plastics, Inc., ("Value Plastics"), a leading designer and manufacturer of precision engineered, plastic molded, single-use fluid connection components used primarily in critical flow control applications for healthcare and medical device markets. Headquartered in Fort Collins, Colorado, Value Plastics employs approximately 75 people. The transaction is expected to close during Nordson's fourth fiscal quarter.
"Value Plastics has generated outstanding growth over an extended period by providing differentiated, single-use, precision molded plastic components that are delivered through a highly efficient sales process and supported by exceptional customer service. This model represents the same highly successful approach that we employ within our Nordson EFD product line today," said Nordson President and CEO Michael F. Hilton. "In addition, Value Plastics supports Nordson's strategic objective of building upon our medical and life sciences platform and complements our existing growing positions in biomaterial delivery devices and medical device assembly. Value Plastics is an ideal addition to the Nordson portfolio, where our global reach and infrastructure will provide opportunities to leverage the business' profitable growth beyond its primary domestic markets served and into general industrial markets. In line with this strategy, Value Plastics will operate as part of Nordson's Advanced Technology Systems segment, which operates on a global basis."
The $250 million purchase price, subject to adjustment as provided in the purchase agreement, will be financed with availability under an existing $400 million revolving credit facility. The transaction is expected to be accretive to Nordson's earnings in the first full year of acquisition.
Value Plastics' product line includes quick connect fittings, luer fittings, check valves, tube-to-tube fittings, threaded fittings and blood pressure monitoring components. These products are generally low dollar cost, high value-add, mission-critical components of the larger systems they enable. Major applications for these products include general insufflation, irrigation and aspiration sets, single-use container systems, anesthesia, cardiovascular surgery, ophthalmic surgery, cataract surgery and blood management.