WESTLAKE, Ohio - Nordson (NASDAQ:NDSN) Corporation (NASDAQ:NDSN) has announced the definitive agreement to purchase Atrion Corporation (NASDAQ:ATRI), a specialist in medical infusion and cardiovascular solutions, for $460 per share in cash. The transaction, valued at 15 times Atrion's projected 2024 EBITDA, inclusive of anticipated synergies, is set to broaden Nordson's medical portfolio and is expected to close before the end of Nordson's fiscal year 2024, subject to regulatory and shareholder approval.
Atrion, headquartered in Allen, Texas, reported annual revenues of approximately $169 million in 2023. The company operates three specialized FDA registered manufacturing facilities in the United States. The acquisition includes Atrion's Halkey Roberts, Atrion Medical, and Quest Medical businesses, which are poised to significantly expand Nordson's market presence in infusion and cardiovascular therapies.
Nordson's president and CEO, Sundaram Nagarajan, remarked on the alignment of the acquisition with Nordson's long-term growth strategy, driven by aging populations, increased healthcare spending, and a shift towards minimally-invasive surgical techniques. Stephen Lovass, Nordson's executive vice president, also noted the strategic fit of Atrion's product and patent portfolios, as well as its skilled workforce.
The acquisition price of $460.00 per share represents a total enterprise value of approximately $800 million. Nordson plans to fund the transaction through cash on hand and newly issued debt. Morgan Stanley (NYSE:MS) & Co. LLC served as the financial advisor, while Davis Polk & Wardwell LLP provided legal counsel to Nordson for this transaction.
Nordson, founded in 1954 and based in Westlake, Ohio, is a precision technology company with global operations in over 35 countries. The company's growth strategy focuses on delivering high growth with leading margins and returns across a diverse set of end markets, including consumer non-durable, medical, electronics, and industrial.
The information in this article is based on a press release statement from Nordson Corporation.
InvestingPro Insights
As Nordson Corporation (NASDAQ:NDSN) gears up for the strategic acquisition of Atrion Corporation, the financial community is closely monitoring Nordson's performance metrics. According to real-time data from InvestingPro, Nordson boasts an impressive market capitalization of $13.63 billion, underscoring its financial robustness in the sector. With a Price/Earnings (P/E) Ratio of 28.36 and a slightly adjusted P/E Ratio for the last twelve months as of Q2 2024 at 28.19, the company's valuation is reflective of its earnings potential.
Investors are particularly interested in Nordson's gross profit margin, which stands at a robust 55.01% for the last twelve months as of Q2 2024. This figure highlights the company's efficiency in managing its cost of goods sold and its ability to generate substantial profit from its revenues. Moreover, Nordson's long-standing commitment to shareholder returns is evident in its track record of raising its dividend for 31 consecutive years, a testament to its stable financial health and confidence in future growth.
Two noteworthy InvestingPro Tips for Nordson include its impressive gross profit margins and its consistent dividend payments over 45 consecutive years, signaling a reliable income stream for investors. For those seeking a deeper dive into Nordson's financials and future outlook, InvestingPro offers additional tips. There are 10 more InvestingPro Tips available, which can provide further insights into Nordson's operational performance and stock valuation. Investors interested in these exclusive tips can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the acquisition set to expand Nordson's footprint in the medical sector, these financial metrics and expert tips serve as valuable tools for investors to assess the company's current standing and future prospects. As the deal progresses towards closure, these insights will be crucial in understanding the impact on Nordson's market position and financial performance.
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