Nordson Corp agrees to acquire Atrion Corp for $800 million

Nordson Corporation (NASDAQ: NDSN) said on Tuesday that it had entered into a definitive agreement to acquire Atrion Corporation, a provider of proprietary medical infusion fluid delivery and niche cardiovascular solutions.

The all-cash deal is valued at nearly $800 million, or $460.00 per share. The transaction is to be funded via a combination of cash on hand and newly issued debt, Nordson Corp said.

The above represents a valuation of 15X Atrion’s 2024 full-year estimated EBITDA, including synergies that Nordson expects to generate in the first two years of the ownership.

The acquisition is expected to expand Nordson’s medical portfolio into new markets and therapies.

“Over nearly 15 years, Nordson has built a strong medical portfolio through organic and acquisitive growth. This attractive end market has several long-term secular growth drivers, including aging of the population, increasing healthcare spending and procedures, adopting of minimally-invasive surgical techniques, continuing innovation and medical OEM outsourcing,” Sundaram Nagarajan, President and Chief Executive Officer of Nordson Corp, said in a press release.

“We have long admired Atrion’s technology portfolio, and today’s announcement represents a step forward in expanding our medical offerings for our customers. Leveraging our NBS Next growth framework and medical business expertise, we see significant operational synergies, while supporting the long-term growth of the business.”

Stock Performance

The shares of Nordson Corporation (NDSN) closed 0.02% ($0.04) higher at $237.94 on Nasdaq on Friday, as they snapped a four-day streak of losses.

The company’s total market cap now stands at $13.627 billion.

The shares of Nordson Corporation (NDSN) went up 11.12% in 2023, compared with a 24.23% gain for the benchmark index, S&P 500 (SPX).

The company’s shares have retreated 9.92% so far this year.