Nordson has enough borrowing capacity for organic, inorganic growth

By Devika Patel

Knoxville, Tenn., Aug. 31 – Nordson Corp. has sufficient borrowing capacity on its balance sheet to fund growth opportunities, similar to a $180 million all-cash acquisition announced last week.

“We continue to have significant available borrowing capacity to pursue organic and inorganic growth opportunities, similar to the NDC acquisition announced last week,” executive vice president and chief financial officer Joseph P. Kelley said on the company’s third quarter ended July 31 earnings conference call on Tuesday.

On Aug. 24, Nordson reported that it has signed a definitive agreement to acquire the NDC Technologies business, a global provider of precision measurement solutions for in-line manufacturing process control, from Spectris plc in an all-cash transaction valued at $180 million.

Free cash flow for the quarter was $118 million, or 45% above the prior year’s third quarter free cash flow.

Cash and cash equivalents were $174,235,000 as of July 31, 2021, compared to $208,293,000 as of Oct. 31, 2020.

Long-term debt was $789,731,000 as of July 31, 2021, compared to $1,067,952,000 as of Oct. 31, 2020.

Net debt was $647 million as of July 31, with the company ending the quarter with a 0.9x leverage ratio based on trailing 12-months EBITDA

Nordson is a Westlake, Ohio-based manufacturer and marketer of differentiated products and systems used for dispensing adhesives, coatings, sealants, biomaterials and other materials, fluid management, test and inspection, UV curing and plasma surface treatment.

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