Nordson has signed an agreement to acquire melt delivery components manufacturer Xaloy Superior for $200m, in an effort to expand its offering to the flexible packaging and plastic processing markets.
Following the acquisition, Xaloy, which has operations in the US, Germany and Thailand, will operate as part of Nordson's adhesive dispensing systems segment.
Nordson president and CEO Michael F Hilton said Xaloy's product range allows it to provide customers with an integrated solution that covers the entire plastic processing melt stream.
"By adding this capability to our recent extrusion die product line acquisitions, Nordson now brings the industry a truly unique offering that combines the critical elements of both material flow and dispensing," Hilton added.
The solutions offered by Xaloy are critical to the production of an array of products for diversified and growing global end markets including packaging, and Nordson expects the acquisition to be accretive to its earnings in the first full year of operation.
Nordson will reveal additional details about the business upon closing the transaction, which is expected during the third quarter pending customary closing conditions and regulatory reviews.