Nordson to Welcome Atrion into Its Medical and Fluid Solutions Segment for $800 Million

In a bid to venture into the healthcare field from its domain in the industrial precision manufacturing industry, Nordson has recently acquired Atrion for $800 million, an amount that is approximately 20 times its 2023 EBITDA, in an all-cash deal.

Each Atrion share will be purchased for $460, making the total valuation for the deal 15 times more than the predicted profit Atrion is expected to bring in 2024.

Once stockholder and pending regulatory approvals clear, the deal is expected to be finalized before the end of Nordson’s fiscal year 2024.

The 80-year-old Texas-based company is an attractive prospect for Nordson because of its portfolio of hospital hardware, ranging from open-heart surgery to drug delivery.

Through its Halkey Roberts label, Atrion assists patients on dialysis and those suffering from cancer through its variety of valves used for medication infusions. This is one of the firm’s main businesses. Additionally, the company produces patient safety monitoring systems. Under its Quest Medical brand, it has developed equipment that can purposefully stop the heart beating during cardiac procedures.

In addition, specialty inflation systems such as ophthalmic balloon catheters for clearing blocked tear ducts also form a segment of Atrion’s medical products.

Atrion also has three FDA-registered facilities for contract manufacturing services for medical devices in the U.S. According to Stephen Lovass, EVP of Nordson Medical and Fluid Solutions, Atrion’s product and patent portfolio are important additions to Nordson Medical and will allow the company to offer more comprehensive solutions to their patients.

According to Sundaram Nagarajan, the CEO of Nordson, the agreement between Nordson and Atrion is expected to increase the company’s total addressable market by more than 50% once it is properly integrated into Nordson’s $500 million medical and fluid solutions segment. This sector in Nordson focuses on tubing, valves, and delivery tools.

Nagarajan further explained, “The medical space is an attractive end market, supported by several secular growth drivers, including the aging population, increasing health care spending and procedure volumes, the option of minimally invasive surgical techniques, and continued innovation and medical OEM outsourcing.”

Although Atrion has faced certain supply chain challenges in the post-COVID period, particularly concerning the shortages of its computer chips, Nordson is confident that with the merger of the two firms, this problem will quickly resolve itself, especially after Nordson launches generational updates to Atrion’s cardiovascular systems.

Data shared by Atrion earlier this month revealed that first-quarter revenues for this year were up $7.3 million compared to last year’s first-quarter revenues of $40 million.

Atrion President and CEO David Battat added that in the first quarter of this year, a record number of MPS 3 consoles were sold, which can be attributed to pent-up demand and a strong market pull now that supply chain hurdles had been addressed.

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