By: Bill Bregar
December 19, 2012
WESTLAKE, OHIO (Dec. 19, 12:30 p.m. ET) — Nordson Corp. is rebranding its screw and barrel and flat-die businesses to more common-sense names of Nordson Xaloy and Nordson EDI.
They had been called Xaloy Superior Holdings Inc. and EDI Holdings Inc. Westlake, Ohio-based Nordson bought Xaloy and EDI earlier this year.
Also, Nordson announced that the Nordson EDI brand name now includes Constructiewerkhuizen G. Verbruggen NV, the Belgian flat-die maker Nordson company bought in 2011, and Premier Dies Corp., which EDI had purchased.
Over the next several months, Nordson Xaloy and Nordson EDI will get new logos, to align them more closely with Nordson’s identity. Contacts for sales and service will remain the same for both organizations.
Nordson Xaloy and Nordson EDI fall under Nordson’s Adhesive Dispensing Systems unit. In a conference call, President and CEO Michael Hilton said the plastics-related operations have long-term growth rates that are one or two percentage points above the overall Adhesives business.
Nordson, which is traded on the Nasdaq stock exchange, reported full-year and fourth-quarter results Dec. 14. Nordson reported 2012 -sales of $1.4 billion, a 14 percent increase from 2011. The fiscal year ends Oct. 31.
Hilton said he is optimistic about the plastics business and the cold-material sector served by another recent acquisition, Sealant Equipment & Engineering Inc., in the first quarter of fiscal 2013.
“With regards to the current market trends within plastic processing, although we’re seeing recent softness in flexible packaging OEM demand, we do expect to be on plan for the year as capacity has reached the level where a further investment is required,” Hilton told analysts. “We remain very excited about the growth opportunity in plastic processing, as well as the cold-material end market... and are optimistic that these businesses will be strong contributors to Nordson’s overall performance.”
Nordson is in good financial shape to make more acquisitions, according to company officials.
Chief Financial Officer Gregory Thaxton said Nordson has very strong cash flow and available credit. That “provides adequate liquidity for strategic opportunities,” he said.