Nordson Corp. has acquired Plas-Pak Industries Inc., a designer and injection molder that makes plastic packaging and delivery systems for liquids, pastes and gels — including single-use plastic dispensing and packaging products such as two-component cartridges for industrial and do-it-yourself adhesives, syringes, and dispensing guns.
The deal includes Plas-Pak's headquarters factory in Norwich, Conn., and a technical center in Pittsburgh.
Nordson, a publicly held, Westlake, Ohio-based company, announced the deal Feb. 1. Terms were not disclosed.
Buying Plas-Pak is a good fit with the Nordson EFD business of precision dispensing equipment and fluid control systems which are used to apply controlled amounts of adhesives, sealants, lubricants and other assembly fluids in a wide range of industries, according to Jeff Pembroke, vice president for Nordson's Advanced Technology Systems segment.
“The transaction also aligns with our strategic objective of diversifying Nordson's Advanced Technology segment through greater participation in less cyclical markets,” Pembroke said in a statement.
In addition to the DIY adhesives market, Plas-Pak also makes its Dial-A-Dose syringes for veterinary and animal health applications, as well as specialty syringes for the pesticides, dental and other markets. The HSS (high solids spray) dispensing system is a single-use product that creates faster-curing formulations, including coatings, liners, foams and sealants.
“Plas-Pak's recurring revenue model, proprietary technology and low-dollar-cost, high-value-add selling proposition are highly complementary and consistent with our existing Nordson EFD product line,” Pembroke said.
Plas-Pak was founded in 1985, and was majority owned by Charles Frey, who was active in the molder since its start. The company has developed a large number of proprietary products and received patents. The company employs about 150 people, out of a 160,000-square-foot factory.
P&M Corporate Finance and John Hart, its managing director, served as the financial adviser to Frey and Plas-Pak.
Frey said that “Plas-Pak and Nordson share similar cultures.”
Plas-Pak's Pittsburgh technical center evaluates applications for customers, accepting customer formulations, then filling and testing them.
Nordson already does injection molding for its own use, such as fittings, connectors, syringes and cartridges, as well as some custom molding, at several locations, said James Jaye, senior director of communications and investor relations.
Nordson, traded on the Nasdaq stock exchange, generated $1.81 billion of sales in fiscal 2016, which ended Oct. 31. The company bought LinkTech Quick Couplings Inc., a maker of couplings and fittings for medical, on Sept. 1.