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Nordson’s Unit Acquires PCP Product Line of Infiniti Dosing

Zacks

Nordson Corporation’s NDSN subsidiary — Nordson ASYMTEK — yesterday announced that it has added the progressive cavity pump (PCP) product lines of Germany-based Infiniti Dosing o.m.s. to its portfolio. As noted, the buyout was completed on Jan 5.

Financial consideration of the acquisition was not disclosed.

Nordson ASYMTEK is known globally for its equipment and technologies required in automated fluid dispensing, jetting and conformal coating. Prime end markets served include 3D packaging & wafer-level packaging, alternative energy, camera module assembly, case & package assembly, electro-mechanical, hard disk drive, life science, semiconductor packaging, printed circuit board assembly and others. It was founded in 1983.

Benefits From the Buyout

The buyout has provided Nordson access to Infiniti Dosing’s Dot Streamer and Accura brands. Through these well-known brands, the precision dispensing equipment manufacturer, will be able to expand its reach in the dispensing and dosing markets. Strongly complementing the company’s existing jetting technology, the PCP technology will make possible micro-dispensing of materials like solder pastes, MS polymers, epoxy resins, potting compounds, sealants, silicones and conductive adhesives for electronics applications.

The acquired assets of Infiniti Dosing will be part of Nordson’s Advanced Technology Systems segment.

Inorganic Initiatives Fuel Growth

Over time, Nordson has been capitalizing on its acquired assets by penetrating into unexplored markets and expanding its product lines. In this regard, buyouts of ACE Production Technologies, Inc. in January 2017, Plas-Pak Industries, Inc. and InterSelect GmbH in February and Advanced Technologies business of Vention Medical in March are worth mentioning. In January 2018, the company acquired Sonoscan. All these assets have strengthened its businesses under Advanced Technology Systems segment. ACE Production Technologies and InterSelect are projected to deliver mid-to-high single digit growth over the next several years.

Notably, benefits from the acquired assets have added 10% and 7% to Nordson’s revenue growth in fiscal fourth quarter and fiscal 2017, respectively. It anticipates acquired assets to contribute approximately 11% to sales growth in the first quarter of fiscal 2018. In addition, organic volume increase will strengthen sales by 15-19% while foreign currency movements will add 4%, bringing total revenue growth in the range of 30-34%.

Market sentiments have been positive for Nordson in the last three months. The company’s shares have yielded 23.2% return, outperforming 7.5% gain of the industry it belongs to.



Zacks Rank & Stocks to Consider

With a market capitalization of nearly $8.6 billion, Nordson currently carries a Zacks Rank #3 (Hold). Over the 60 days, earnings estimates for the stock has been revised upward by eight brokerage firms for fiscal 2018 while that for fiscal 2019 has been increased by two and decreased by one.

Currently, the Zacks Consensus Estimate is pegged at $6.24 for fiscal 2018 (ending October 2018) and $6.82 for fiscal 2019, reflecting growth of 7.2% and 6.6% from their respective tallies 60 days ago.

Nordson Corporation Price and Consensus

Nordson Corporation Price and Consensus | Nordson Corporation Quote

Some better-ranked stocks in the machinery industry are Colfax Corporation CFX, Atlas Copco AB ATLKY and EnPro Industries, Inc. NPO. While Colfax sports a Zacks Rank #1 (Strong Buy), both Atlas Copco and EnPro Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Colfax’s earnings estimates for 2018 improved in the last 60 days. The company pulled off an average positive earnings surprise of 5.31% in the last four quarters.

Atlas Copco performed well in the last quarter, with a positive earnings surprise of 4.65%. Also, earnings expectations for 2018 have improved over the past 60 days.

EnPro Industries’ earnings estimates for 2018 were revised upward in the last 60 days.

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