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Nordson acquires Xaloy

US-based Nordson will acquire screw/barrel maker Xaloy for US$200 million purchase price, subject to adjustment, will be financed with available credit facilities. The transaction is expected to conclude during Nordson’s third quarter pending customary closing conditions and regulatory reviews.

Xaloy has operations in the US, Germany and Thailand, and will operate as part of Nordson’s Adhesive Dispensing Systems segment. Nordson expects the acquisition of Xaloy to be accretive to the company's earnings in the first full year of operation.

According to Nordson, Xaloy’s solutions are critical to the production of a vast array of products for diversified and growing global end markets, including packaging, consumer products, electronics, medical, building products, and transportation and aviation. Demand for plastic-end products produced using Xaloy’s solutions is driven by multiple factors such as ongoing population growth, particularly in emerging markets, and material conversion trends.