Nordson Corporation Announces Agreement to Acquire ARAG, Expanding its Core Dispense Capabilities into the Attractive Precision Agriculture Market

Nordson Corporation (Nasdaq: NDSN) today announced that it has entered into a definitive agreement to acquire ARAG Group and its subsidiaries (“ARAG”) in an all-cash transaction that values ARAG at an enterprise value of €960 million.

Headquartered in Rubiera, Italy, ARAG is a global market and innovation leader in the development, production and supply of precision control systems and smart fluid components for agricultural spraying. Its portfolio consists of three key product families: fluid components, such as nozzles, pumps and filters; smart components that measure and control the flow, quantity and location of the dispensed fluid; and control systems that provide a greater variety of input and functionality to the customer. ARAG’s broad product portfolio is further supported by differentiated software and data capabilities. Established in 1976, ARAG supports its customers through seven manufacturing and distribution locations globally and a sales network serving more than 80 countries.

Sundaram Nagarajan, president and chief executive officer of Nordson Corporation, said, “Precision dispensing is a core capability of Nordson. Over nearly 70 years, we’ve expanded that expertise beyond our beginnings in industrial applications into packaging, product assembly, nonwovens, electronics, medical and more. Through the acquisition of ARAG, a market and technology leader, we have entered the high-growth end market of precision agriculture. Strategically, Nordson is attracted to companies with differentiated technologies and a customer-centric model. ARAG’s innovative precision spraying, dispense and software solutions help customers boost crop yields while sustainably reducing the usage of fertilizers and chemicals. We are looking forward to welcoming ARAG’s nearly 700 global employees to Nordson upon the close of this deal.”

“This transaction is another step forward in our Ascend Strategy, fitting our strategic and financial acquisition criteria well. In the fast-growing precision agriculture end market, ARAG’s differentiated precision technology portfolio generates Nordson-like gross margins,” said Jeffrey Pembroke, executive vice president, Nordson Industrial Precision Solutions segment. “Well established and known in Europe and South America, we will be able to leverage Nordson’s strong brand and commercial infrastructure to expand ARAG’s limited presence in the North American market.”