LONDON, UK: Spectris plc announced the divestment of its NDC Technologies business.
The transaction is in line with Spectris’ strategy to simplify and focus its portfolio and is the last of the divestments identified in 2019 as part of its Strategy for Profitable Growth.
Subject to the completion of the disposal, the proceeds will be used to further strengthen our balance sheet and then be deployed in accordance with our capital allocation policy.
Spectris has agreed with Nordson Corporation, for Nordson to acquire NDC from Spectris for $180 million (£130 million).
NDC, part of Spectris’ Industrial Solutions division, designs, develops and produces a range of on-line and off-line process measurement and control instrumentation. The key industries it supplies are food, bulk and tobacco; film extrusion and converting; cable and tubing and energy storage.
NDC’s customer application focus, solutions and markets align well with Nordson’s focus on high precision, high speed critical test and inspection applications. NDC will be part of Nordson’s Advanced Technologies Solutions segment. Spectris believes its next stage of development can be better fulfilled under Nordson’s ownership.
For financial year 2020, the adjusted operating profit generated by NDC was £7.2 million and EBITDA was £9.7 million. The transaction is subject to customary completion conditions and regulatory approvals, with completion expected to take place in the fourth quarter of 2021.
Commenting on the transaction, Andrew Heath, Chief Executive, said: “In 2019, we identified five divestment candidates in our portfolio optimisation strategy and we have now completed that programme. I would like to thank all of our NDC employees for their contribution to Spectris over the years and wish them well in the next stage of their journey.
I am pleased with the value that this programme has delivered for our shareholders. Additionally, with this portfolio optimisation programme completed, Spectris is now a less complex and more focused business and the retained businesses within our portfolio are aligned to key end markets with attractive growth trajectories. This positions us well to continue to deliver long-term value for our stakeholders.”
Nordson Corporation is a global designer and manufacturer of innovative precision technologies for critical customer applications in consumer non-durable, medical, electronics and industrial end markets. The Company’s products are supported by application expertise and direct global sales and service. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in over 35 countries. www.nordson.com
Spectris’ global group of businesses are focused on delivering value beyond measure for all our stakeholders. Headquartered in Egham, Surrey, United Kingdom, the Company employs approximately 7,650 people located in more than 30 countries.
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23 Aug, 4:35 pm GMT+1 ·Disclaimer
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