Nordson Corp. announced it will sell its screws and barrels product line from its Polymer Processing Systems division to Chicago-based Altair Investments Inc, a private-equity firm focused on investing in niche manufacturing companies.
Sundaram Nagarajan, president and CEO of Westlake, Ohio-based Nordson, said the move is part of an effort to focus company resources on precision technology solutions. “Our screws and barrels product line is a respected market leader in the polymer processing industry. While this product line no longer fits Nordson’s strategic focus, we believe it will do well with Altair,” Nagarajan said.
The product line brings in more than $70 million in annual revenue and supports 500 employees.
Joseph Kelley, Nordson’s executive VP and CFO, said the transaction will require a “one-time, non-cash asset impairment charge of approximately $87 million.”
The companies expect the transaction to close in the first quarter of fiscal 2021.
