BUSINESS WIRE<\/a>)–
\nNordson Corporation (Nasdaq: NDSN) today announced that it has entered into a definitive agreement to acquire ARAG Group and its subsidiaries (\u201cARAG\u201d) in an all-cash transaction that values ARAG at an enterprise value of \u20ac960 million.<\/p>\n\nHeadquartered in Rubiera, Italy, ARAG is a global market and innovation leader in the development, production and supply of precision control systems and smart fluid components for agricultural spraying. Its portfolio consists of three key product families: fluid components, such as nozzles, pumps and filters; smart components that measure and control the flow, quantity and location of the dispensed fluid; and control systems that provide a greater variety of input and functionality to the customer. ARAG\u2019s broad product portfolio is further supported by differentiated software and data capabilities. Established in 1976, ARAG supports its customers through seven manufacturing and distribution locations globally and a sales network serving more than 80 countries.<\/p>\n
\nSundaram Nagarajan, president and chief executive officer of Nordson Corporation, said, \u201cPrecision dispensing is a core capability of Nordson. Over nearly 70 years, we\u2019ve expanded that expertise beyond our beginnings in industrial applications into packaging, product assembly, nonwovens, electronics, medical and more. Through the acquisition of ARAG, a market and technology leader, we have entered the high-growth end market of precision agriculture. Strategically, Nordson is attracted to companies with differentiated technologies and a customer-centric model. ARAG\u2019s innovative precision spraying, dispense and software solutions help customers boost crop yields while sustainably reducing the usage of fertilizers and chemicals. We are looking forward to welcoming ARAG\u2019s nearly 700 global employees to Nordson upon the close of this deal.\u201d<\/p>\n
\n\u201cThis transaction is another step forward in our Ascend Strategy, fitting our strategic and financial acquisition criteria well. In the fast-growing precision agriculture end market, ARAG\u2019s differentiated precision technology portfolio generates Nordson-like gross margins,\u201d said Jeffrey Pembroke, executive vice president, Nordson Industrial Precision Solutions segment. \u201cWell established and known in Europe and South America, we will be able to leverage Nordson\u2019s strong brand and commercial infrastructure to expand ARAG\u2019s limited presence in the North American market.\u201d<\/p>\n
\nARAG has a strong financial profile that is underpinned by its leading innovation capabilities and favorable secular growth trends in precision agriculture. ARAG is expected to generate \u20ac155 million in sales in FY2023. The transaction reflects a valuation of approximately 16.5 times ARAG\u2019s projected 2023 EBITDA. Upon completion of the acquisition, ARAG will operate as a division in Nordson\u2019s Industrial Precision Solutions segment.<\/p>\n
\n\u201cThe acquisition of ARAG emphasizes Nordson\u2019s disciplined capital deployment strategy, which is focused on high-quality niche leaders serving attractive growth markets that are additive to Nordson\u2019s existing lines of business and support long-term shareholder value creation,\u201d said Joseph Kelley, executive vice president and chief financial officer. \u201cThe transaction is expected to close in Nordson\u2019s fourth quarter fiscal 2023, funded through a combination of cash on hand and financial debt.\u201d<\/p>\n
\nDeutsche Bank acted as exclusive financial advisor and Jones Day acted as legal advisor to Nordson Corporation.<\/p>\n
\nARAG is privately held by funds advised by Capvis AG, a European mid-market private equity firm, which acquired the business in 2020 from its founders, who alongside management, have remained invested during Capvis\u2019 holding period.<\/p>\n
\nAndreas Simon, Capvis partner and head of Industrial Technology, said, \u201cWe are delighted to have had the opportunity to partner with the founding families of ARAG and the management team. Through our investment in 2020 we were able to support the growth and transition of ARAG to the level it is today. As a much larger and more internationally positioned business with significant electronic and software drivers, ARAG is best positioned today to continue its impressive growth trajectory with Nordson in the field of precision spraying solutions. We wish Nordson and the management team well for the future.\u201d<\/p>\n
Conference Call \/ Webcast<\/b><\/p>\n
\nNordson will host a conference call to discuss the acquisition at 9:00 am ET today.<\/p>\n
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