New Castle News
NEW CASTLE —
A New Castle plastics firm is being acquired by an Ohio company.
Nordson Corp. announced it has entered into an agreement to purchase New Castle-based Xaloy Superior Holdings Inc., based at 1399 Countyline Road. Xaloy also has offices in Germany and Thailand.
The purchase price of the acquisition will be approximately $200 million.
Xaloy is described as a leading manufacturer of melt delivery components for injection and extrusion machinery in the global plastic processing industry. Nordson is a manufacturer of precision dispensing machines for industry involved in the manufacture of consumer products.
According to a press release from Westlake, Ohio-based Nordson, the $200 million purchase price, subject to adjustment as provided in the purchase agreement, will be financed with available credit facilities. The transaction is expected to close during Nordson’s third quarter, pending customary closing conditions and regulatory reviews.
Once the acquisition is complete, Xaloy will operate as part of Nordson’s adhesive dispensing systems segment.
Michael F. Hilton, Nordson president and chief executive officer, said the Xaloy acquisition will be a good fit for his firm. He cited Xaloy’s comprehensive product range that spans the entire plastic processing melt stream.
He said the Xaloy acquisition will add to Nordson’s recent extrusion die product line acquisitions, combining material flow and dispensing. It was noted much of the expansion in the plastics industry is linked to population growth, particularly in emerging markets overseas.
Information provided by Nordson did not say what impact the acquisition would have on production activities in New Castle. A press release indicated more details about the acquisition will be announced at the close of the deal.
However, James R. Jay, director of communications for Nordson, told the New Castle News his company typically acquires other firms with the intent of investing in them and helping them to grow.
While noting he can say little about the Xaloy acquisition until the deal is complete in about 30 to 60 days, he cited two recent examples, Value Plastics and Micromedics, as two firms Nordson recently purchased and is investing in their growth.
“I expect we’ll take a similar approach with Xaloy,” Jay said.
“We’re excited about the acquisition,” Jay added, describing Xaloy as a good fit with Nordson.
Xaloy was founded in 1929 as California-based Industrial Research Laboratories. In 1963, it moved to the eastern United States, eventually acquiring New Castle Industries in 2003.