WESTLAKE, OHIO (May 21, 12 p.m. ET) — Nordson Corp. has entered into an agreement to purchase Extrusion Dies Industries LLC, which makes flat dies and extrusion coating dies, Westlake-based Nordson announced May 21.
Nordson is paying $200 million for EDI Holdings Inc., but the final price is subject to adjustment, as provided in the purchase agreement. The deal will be financed under Nordson's existing $500 million revolving credit facility.
Nordson will buy the Chippewa Falls, Wis.-based die maker from private equity firm Bertram Capital Management LLC of San Mateo, Calif.
Bertram Capital Management purchased EDI at the end of 2010 from a group headed by four investors who led a management buyout in 2003.
Nordson makes equipment to precisely apply industrial liquids and powder coatings, surface treatment, adhesives and sealants to a range of consumer and industrial products. Michael Hilton, Nordson's president and CEO, called EDI “a clear fit with out strategy of acquiring companies that provide differentiated precision technology at a key part in the supply chain to deliver profitable long-term growth.”
Hilton said Nordson and EDI both deliver equipment that is critical for end users to optimize productivity and uptime.
“EDI's strong customer relationships and installed product base also provides multiple recurring revenue opportunities, including upgrades, replacements or maintenance to existing products,” he said. Hilton added that EDI complements Nordson's existing line of extrusion dies.
EDI employs about 317 people. EDI will be operated as Nordson's Adhesives Dispensing Systems segment.
Nordson, which is traded on the Nasdaq, said the transaction is expected to close during its third quarter.
Nordson executives will discuss EDI in a conference call at 8:30 a.m. May 22 to issue the company's second-quarter results.
EDI makes dies for flexible packaging and converting. Last year, Nordson bought Value Plastics Inc., an injection molder of single-use medical fittings in Fort Collins, Colo.