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Nordson expands medical portfolio with Atrion buy

Published 08/21/2024, 08:59 AM
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WESTLAKE, Ohio - Nordson (NASDAQ:NDSN) Corporation (NASDAQ:NDSN), a global precision technology provider, announced the completion of its acquisition of Atrion Corporation, a company specializing in medical infusion delivery and cardiovascular solutions. The acquisition, initially announced on May 28, 2024, is part of Nordson's strategy to diversify its medical product offerings and tap into new market segments.

The deal is expected to bolster Nordson's presence in the medical technology sector, capitalizing on long-term growth trends within the industry. Atrion's expertise in medical infusion and niche cardiovascular solutions will complement Nordson's existing medical technology portfolio, which serves various end markets, including consumer non-durables, electronics, and industrial applications.

Nordson, founded in 1954 and headquartered in Westlake, Ohio, operates in over 35 countries and is known for its direct sales model and application expertise. The company prides itself on delivering top-tier growth with leading margins and returns through its scalable growth framework and division-led entrepreneurial organization.

Further details about the acquisition's implications for Nordson's financial performance and strategic direction will be shared during the company's third-quarter fiscal year 2024 webcast. The webcast is scheduled for Thursday, August 22, 2024, at 8:30 AM ET, and a replay will be available for investors who cannot attend the live event.

This acquisition comes amid a complex global economic environment, with factors such as U.S. trade policies, tax laws, and geopolitical events like the Russia-Ukraine conflict potentially impacting business operations. Nordson's forward-looking statements regarding the acquisition and its future prospects are subject to these uncertainties and risks.

The information in this article is based on a press release statement from Nordson Corporation.

In other recent news, Nordson Corporation has raised its quarterly cash dividend by 15%, marking a 61-year streak of consistent growth. The company has also announced plans to acquire Atrion Corporation, a move that aligns with Nordson's long-term growth trajectory, particularly in the medical sector. The deal, valued at approximately $800 million, is expected to significantly increase Nordson's presence in the medical equipment industry, representing about 26% of Nordson's pro forma sales.

Despite Atrion's recent sales decrease and a drop in EBITDA margin, Nordson anticipates high single-digit growth in 2024 and aims to improve margin recovery. The acquisition is expected to yield approximately $14 million in synergies within 24 months post-acquisition. Following these developments, Nordson maintained its Buy rating, while Loop Capital left Nordson's shares target unchanged at $255.00, despite a reduced forecast for fiscal year 2024 due to ongoing weakness in the electronics markets and a downturn in demand for agricultural products.

These recent developments are part of Nordson's strategic direction and financial performance, providing valuable information for investors.

InvestingPro Insights

In light of Nordson Corporation's (NASDAQ:NDSN) recent acquisition of Atrion Corporation, investors are keenly observing Nordson's financial metrics and market performance. According to InvestingPro data, Nordson boasts an impressive market capitalization of $13.71 billion, underscoring its substantial presence in the precision technology space. The company's P/E ratio stands at 28.23, reflecting investor confidence in its earnings potential. Additionally, Nordson's gross profit margins are notably high at 55.01%, which is a testament to its operational efficiency and may be particularly relevant as it integrates Atrion's operations.

InvestingPro Tips highlight several strengths in Nordson's financial practices and market position. Notably, Nordson has raised its dividend for 31 consecutive years and has maintained dividend payments for 45 consecutive years, showcasing a reliable return to shareholders—a factor that might be increasingly attractive in the current economic climate. Furthermore, the company's liquid assets exceed its short-term obligations, providing financial stability that could support the assimilation of Atrion's business.

For investors interested in further details and analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/NDSN. These tips offer deeper insights into Nordson's financial health and market standing, which can be particularly valuable for making informed investment decisions in the context of this strategic acquisition.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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