Nordson Corporation today entered into a definitive agreement to divest the screws and barrels product line from its polymer processing systems (PPS) division to Altair Investments (Altair). This divestiture represents a portfolio realignment consistent with Nordson’s strategy to drive profitable growth through highly differentiated products serving attractive end markets.
Sundaram Nagarajan, Nordson president and chief executive officer, said, “Using NBS Next, Nordson’s growth framework, we are focusing our resources on precision technology solutions that will deliver profitable growth for the company. Our screws and barrels product line is a respected market leader in the polymer processing industry. While this product line no longer fits Nordson’s strategic focus, we believe it will do well with Altair. I want to personally thank the employees, who support this product line, for their contributions to Nordson and wish them success in their future with Altair.”
Generating over $70 million in annual revenue with 500 employees, this global product line has been reported in Nordson’s Industrial Precision Solutions segment. Nordson and Altair anticipate closing the transaction in the first quarter of fiscal 2021. They will work collectively to ensure a smooth transition with no disruption to customer service and support.
Joseph Kelley, executive vice president and chief financial officer, commented, “This strategic portfolio transaction will improve the company’s ongoing earnings and require a one-time, non-cash asset impairment charge of approximately $87 million. This action underscores our commitment to align and focus our resources with the best strategic opportunities for long-term profitable growth.”
The company looks forward to providing further color on this pending transaction during its previously announced fourth quarter and fiscal year 2020 webcast. The webcast will be hosted on December 16, 2020, at 8:30 AM ET. To access the webcast, visit https://event.on24.com/wcc/r/2628675/B638FB84EA21025D197A978D960BC497