Nordson Corporation · NASDAQ:NDSN
Nordson — Merger or Acquisition (June 2023)
9 slides from Nordson's merger presentation, Jun 26, 2023
Slide 1: Nordson Acquires ARAG Group
Nordson Acquires ARAG Group Global leader in agriculture precision dispense technology June 26, 2023
Slide 2: Today's Speakers
Today’s Speakers Sundaram Nagarajan Joe Kelley Jeff Pembroke Lara Mahoney President & Executive Vice President Executive Vice President Vice President Chief Executive Officer & Chief Financial Officer Industrial Precision Investor Relations & Solutions Communications 2
Slide 3: Safe Harbor Statement
Safe Harbor Statement Click to edit title Under the Private Securities Litigation Reform Act of 1995 Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by
Slide 4: ARAG Group
ARAG Group Differentiated dispense technology for precision agriculture § Precision dispense is core to Nordson § Differentiated technology generates Nordson-like gross margins § Customer-centric business model § Expands capabilities into high-growth precision agriculture end market 4
Slide 5: Precision Agriculture – Growth Drivers
Precision Agriculture – Growth Drivers €1.4 billion addressable market for spraying systems and components § Population growth and rising demand for food § Lack of arable land, requiring an increase in productivity § Adoption of new technology to support customer profitability – improve crop yields
Slide 6: ARAG – Three Product Families
ARAG – Three Product Families Fluid Components Smart Components Control Systems 45% of sales 33% of sales 22% of sales All supported by proprietary software and data capabilities § Injection molded mechanical parts in direct Electronic control-based components that § Electronic parts, not in contact
Slide 7: Transaction Summary
Transaction Summary • ARAG forecasted 2023 Revenue ~€155 million and EBITDA ~€58 million, or 37% of sales • All-cash transaction that values ARAG at an enterprise value of €960 million, reflecting a valuation of 16.5x forecasted 2023 EBITDA Financial Overview • Valuation of 13.5x 2025 fully synergiz
Slide 8: Questions & Answers
Giordson Questions & Answers
Slide 9: ARAG at a Glance
ARAG at a Glance Leading in precision agricultural spraying with control systems and smart fluid components Control Company Founded 1976 boxes Tank lids Rate GNSS controller receivers 2023E Revenue ~€155M Monitor & displays Control units Gross Margins Nordson-like 2023E EBITDA Joystick ~37% Electron