Nordson Corp. has entered into a definitive agreement to divest the screws and barrels product line from its Polymer Processing Systems (PPS) division to Altair Investments. This divestiture represents a portfolio realignment consistent with Nordson’s strategy of driving profitable growth through highly differentiated products serving attractive end markets, the company said.
Sundaram Nagarajan, Nordson President and CEO, explained: “Using NBS Next, Nordson’s growth framework, we are focusing our resources on precision technology solutions that will deliver profitable growth for the company. Our screws and barrels product line is a respected market leader in the polymer processing industry. While this product line no longer fits Nordson’s strategic focus, we believe it will do well with Altair. I want to personally thank the employees who support this product line for their contributions to Nordson and wish them success in their future with Altair.”
Generating more than $70 million in annual revenue with 500 employees, this global product line has been reported in Nordson’s Industrial Precision Solutions segment. Nordson and Altair anticipate closing the transaction in the first quarter of fiscal 2021. They will work collectively to ensure a smooth transition with no disruption to customer service and support, said the news release.
Nordson Executive Vice President and Chief Financial Officer Joseph Kelley commented: “This strategic portfolio transaction will improve the company’s ongoing earnings and require a one-time, non-cash asset impairment charge of approximately $87 million. This action underscores our commitment to align and focus our resources with the best strategic opportunities for long-term profitable growth.”
Altair Investments is a Chicago-based private equity firm focused on investing in niche manufacturing companies in the lower middle market. Its partners bring more than 35 years of global experience in the financial and manufacturing industries. Altair’s most recent acquisitions include NV Eye Tech and Marathon Boat Group.