WESTLAKE, OHIO (July 21, 3:40 p.m. ET) — Nordson Corp plans to gain more exposure to the healthcare and medical device markets after reaching a definitive agreement to buy Value Plastics Inc., a Fort Collins, Colo.-based designer and manufacturer of plastic single-use fluid connection components.
Value Plastics employs about 75 and makes many patented components that are used in critical flow applications for medical devices. It was founded in 1968.
“It is a great fit for us. We have an industrial business so we're very experienced with plastic injection molding,” said James Jaye, director of communications at Westlake, Ohio-based Nordson, in a telephone interview.
He added that the deal will enable Nordson to offer product lines in the medical area that it hasn't had before.
The Colorado company's product line includes quick-connect fittings, luer fittings, check valves, tube-to-tube fittings, threaded fittings and blood pressure monitoring components. They are generally value-added mission critical components of larger systems. The parts are used for general insufflation, irrigation and aspiration sets, single-use container systems, as well as for anesthesia, blood management and all sorts of surgeries.
Jaye said that Value Plastics sales are about 85 percent in the U.S. and that the combination would enable Nordson to bring the products to a worldwide audience.
He also said that there are synergies with Value Plastics' industrial offerings and they also could be expanded. It will become part of Nordson's Advanced Systems segment.
“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,” said Nordson President and CEO Michael Hilton, in a news release.
Nordson has over a $1 billion in sales and is a leader in precision dispensing equipment for industrial liquid and powder coatings, adhesives and sealants to consumer and industrial products. It has operations in over 30 countries.
Nordson said in statement that a $250 million purchase price is subject to adjustment and will be financed under an existing $400 million revolving credit agreement. The deal is expected to close during Nordson's fourth quarter, which starts Aug.1, and the company expects it to be accretive to its earnings in the first full year of acquisition. According to the SEC filing, the deal is a stock purchase agreement between Nordson with VP Acquisition Holdings Inc. and American Capital Ltd.