Back to top

Image: Bigstock

Nordson (NDSN) to Acquire Atrion & Boost Medical Offerings

Read MoreHide Full Article

Nordson Corporation (NDSN - Free Report) recently announced that it has signed a definitive deal to acquire Atrion Corporation (ATRI - Free Report) for about $460.00 per share in cash. NDSN is expected to fund the transaction through cash on hand and recently issued financial debt.

Nordson’s shares inched down 1.8% yesterday to eventually close the trading session at $233.58.

Based in Allen, TX, Atrion is engaged in manufacturing proprietary medical infusion fluid delivery and niche cardiovascular solutions in the United States.
ATRI is comprised of three businesses, namely, Halkey Roberts, Atrion Medical and Quest Medical.

Halkey Roberts is a leading provider of infusion fluid delivery solutions, while Atrion Medical offers OEM interventional inflation devices for balloon catheterization. Quest Medical is touted for its differentiated myocardial protection devices and single-use consumables. Atrion, which operates through three specialized FDA-registered manufacturing facilities, generated revenues of about $169 million in 2023.

Acquisition Rationale

The latest buyout is in sync with Nordson’s policy of acquiring businesses to strengthen its business and product portfolio. The inclusion of Atrion’s three major businesses — Halkey Roberts, Atrion Medical and Quest Medical — will enable NDSN to expand its medical offerings in the infusion and cardiovascular therapies market.

Management expects the buyout to offer significant operational synergies when combined with its NBS Next growth framework and medical business expertise. The transaction is anticipated to be completed prior to fiscal 2024-end (ending October 2024), conditioned on the fulfillment of certain customary closing conditions.

Zacks Rank & Price Performance

Nordson, with a $13.4 billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company is experiencing weakness in the electronics end market owing to a decrease in consumer discretionary spending. Also, supply-chain disruptions, particularly related to the availability of electronic components, remain concerning.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s shares have lost 12.2% compared with the industry’s decline of 1.8% in the past three months.

The Zacks Consensus Estimate for NDSN’s fiscal 2024 earnings has decreased 4% over the past 60 days. It has a trailing four-quarter average earnings surprise of 3.7%.

Stocks to Consider

A couple of better-ranked stocks from the same space are discussed below.

Luxfer Holdings (LXFR - Free Report) presently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter average earnings surprise of 122.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for LXFR’s 2024 earnings has increased 13.5% in the past 60 days.

Crane Company (CR - Free Report) presently carries a Zacks Rank of 2 (Buy). It delivered a trailing four-quarter average earnings surprise of 15.2%.

In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has risen 3.1%.

Published in