Nordson Corp. will acquire Xaloy Superior Holdings Inc. for $200 million in a move that will expand its offering to global flexible packaging and plastic processing markets.
This latest acquisition news follows Nordson recent announcement it has acquired extrusion-dies producer EDI Holdings Inc. for $200 million.
Xaloy is a manufacturer of melt delivery components for injection and extrusion machinery in the global plastic processing industry and has operations in the U.S., Germany and Thailand. Xaloy will now operate as part of Nordson's adhesive dispensing systems segment. Nordson expects the acquisition of Xaloy to close in its third quarter, and be accretive to the company's earnings in the first full year of operation.
"Like Nordson, Xaloy delivers products and systems that perform mission-critical functions which maximize uptime, throughput, end-product quality and overall process performance, ultimately resulting in enhanced customer profitability," stated Nordson president and CEO Michael Hilton, in a news release. "Xaloy's comprehensive product range allows it to provide customers with an integrated solution that spans the entire plastic processing melt stream."
Xaloy serves a wide variety of end markets including packaging, consumer products, electronics, medical, building products, and transportation and aviation. The company's product line features bi-metallic barrels, engineered screws, melt pumps, screen changers, heat transfer rolls, valves and nozzles, jet cleaners and pelletizers.
These products serve the plastics melt stream, which consists of the processing stages in which plastic resin is converted from solid pellets into a liquid "melt" and ultimately extruded through a die or injected into a mold to produce a finished good.
In 2011, Nordson implemented an acquisition strategy, and closed on three transactions: Micromedics a provider of single-use dispensing components for biomaterials, plastic connector manufacturer Value Plastics, and flexible packaging company Verbruggen.
Founded in 1954 and headquartered in Westlake, OH, Nordson has operations and offices in more than 30 countries. The company engineers, manufactures and markets products and systems used for dispensing adhesives, coatings, sealants, biomaterials and other materials.
The company's markets include packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing.