Nordson Corp. talks acquisition of Kreyenborg Group’s polymer processing companies

Nordson Corp. has made another move on the acquisition front with the announcement the company will buy Münster, Germany based Kreyenborg Group's Kreyenborg GmbH and BKG Bruckmann & Kreyenborg Granuliertechnik GmbH companies.

A Nordson Corp. spokesperson told PlasticsToday that this deal is in line with the company's strategy of high, value engineered melt stream components and that Kreyenborg is among the market leaders.

In particular, the spokesperson said that the pelletizer product offering broadens its addressable market to include recycling and compounding.

The acquired companies are said to expand Nordson's existing offering of screen changers, pumps and valves, critical components in the polymer processing melt stream for extrusion processes, and expand the product portfolio to include pelletizers, a key component in polymer compounding, recycling and related processes.

"This adds to existing offerings in the plastic extrusion area, which is largely flexible packaging," the spokesperson said. "It expands XALOY's current offering in screen changers (filters) and melt pumps and strengthens relationships with key European OEMs."

The acquired companies employ about 270 people, with additional operations in Shanghai, China; Kuala Lumpur, Malaysia; and Georgia and will operate as part of Nordson's adhesive dispensing systems segment. Nordson expects the acquisition to be accretive to its earnings in the first full year of operation.

Prior to this announcement, at the K 2013 preview (July 1-3; Düsseldorf, Germany), Kreyenborg BKG presented some of the company's solutions, but did not specify what they will showcase at K.  

The managing directors Jan-Udo Kreyenborg and Theodor Bruckmann have sold their shares of Kreyenborg GmbH, which manufactures screen changers and melt filters, and of BKG Bruckmann & Kreyenborg GmbH, which offers special processing technology to produce high-quality plastic pellet, according to a news release from Kreyenborg.

Kreyenborg stated the alignment with a company like Nordson is necessary for long-term corporate security in global heavily modified markets.

"In the long run a medium-sized manufacturer needs a strong global presence to remain competitive with the 'big players,' especially in Asia and North America," the company said. "As healthy companies, Kreyenborg and BKG, still had the chance to negotiate with the new owners and have been able to achieve a successful result."

The production facilities of the two companies at Coermuehle and at Hessenweg in Muenster was leased to Nordson for an initial term of 10 years.

The changes do not apply to the other members of the Kreyenborg group KPT Kreyenborg Plant Technology GmbH & Co. KG, BLS Integration GmbH & Co. KG and BSG Bruckmann Control GmbH.

Nordson has more than 5000 employees and an annual turnover of $1.5 billion.

The Nordson spokesperson said that the organizations share several customers and that there will be multiple opportunities for leverage.

"Kreyenborg serves a wide range of customers, from Fortune 500 companies to custom plastics processors to extrusion equipment OEMs. Examples include BASF, DuPont, KraussMaffei, Bruckner, and Davis-Standard," the spokesperson said.

In the past few years, Nordson acquired Extrusion Dies Industries (EDI) and Verbruggen, two of the biggest makers of flat dies for cast film.