Nordson Corp. plans to gain more exposure to the health-care and medical-device markets with the acquisition of Value Plastics Inc., a Fort Collins, Colo.-based designer and injection molder of plastic single-use fluid connection components.
Value employs about 75 and makes patented components used in critical flow applications for medical devices. It was founded in 1968.
“It is a great fit for us,” Nordson communications director James Jaye said by telephone. “We have an industrial business, so we're very experienced with plastic injection molding.”
The deal will enable Westlake, Ohio-based Nordson to offer new product lines in the medical area, he added.
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 between August and October, according to Nordson.
Value's product line includes quick-connect, luer, tube-to-tube and threaded fittings; check valves and blood-pressure monitoring components. The parts are generally value-added mission-critical components of larger systems used in general insufflation, irrigation and aspiration, anesthesia, blood management and various surgeries.
Value's sales are about 85 percent in the U.S. but the deal will let Nordson bring those products to a worldwide audience, Jaye said. He noted synergies with Value's industrial offerings, which could be expanded. Value 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,” Nordson President and CEO Michael Hilton said in a news release.
Nordson does more than a $1 billion in sales in precision dispensing equipment for industrial liquid and powder coatings, adhesives and sealants to consumer and industrial products. It operates in more than 30 countries.
Nordson expects the new business to be accretive to its earnings in the first full year of acquisition. According to the Securites and Exchange Commission filing, the deal is a stock purchase agreement between Nordson with VP Acquisition Holdings Inc. and American Capital Ltd.