Nordson to buy x-ray system manufacturer Dage Holdings
-- Test & Measurement World, 12/19/2006 7:17:00 AM
Nordson, a producer of precision dispensing equipment that applies adhesives, sealants, and coatings to a broad range of consumer and industrial products during manufacturing, has signed a definitive agreement to acquire Britain's Dage Holdings, a manufacturer of test and inspection equipment used in the semiconductor and printed-circuit-board industries.
Dage's digital x-ray systems and bond testers analyze the integrity of electronic connections in semiconductor packages and printed circuit board assemblies and ensure quality and process control during the manufacturing process. The company employs more than 200 people and had revenues of approximately $59 million during the 12-month period ending October 31, 2006.
"The purchase of Dage fits Nordson's strategy of acquiring companies with above-average growth in markets currently served by Nordson companies," said Edward P. Campbell, Chairman and CEO of Nordson. "Over the three-year period ending April 30, 2006, Dage revenues and operating profit grew at annual rates of 24% and 69%, respectively. These growth rates are nearly identical to those of Nordson's Advanced Technology Systems segment, which since 2003 has grown revenues and operating profit at annual rates of 23% and 59%, respectively." Campbell added, "Dage's operating margins during the first half of its fiscal 2007 were 21%. At current rates of growth and profitability, we expect Dage to be accretive to Nordson's fiscal year 2007 earnings per share."
The acquisition is subject to review by the German Federal Cartel Office. For more information, go to www.nordson.com or www.dage-group.com.
