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Test & Measurement | November 18, 2006

Nordson acquires Dage

Nordson Corporation today announced that it has signed a definitive agreement to acquire Dage Holdings, Ltd., a UK based manufacturer of testing and inspection equipment used in the semiconductor and printed circuit board industries.
Dage, headquartered employs more than 200 people and had revenues of approximately $59 million during the 12-month period ending October 31, 2006. Terms of the purchase were not disclosed.

Dage's bond testing and digital X-Ray systems are used to analyze the integrity of electronic connections in semiconductor packages and printed circuit board assemblies. Consumer demand for more features and higher performances from electronic devices has dramatically increased the number and complexity of electronic connections on chips and printed circuit boards. Dage's test equipment, particularly the digital X-Ray systems, is critical for ensuring quality and process control during the manufacturing of today's high-tech electronic equipment.

"The purchase of Dage fits Nordson's strategy of acquiring companies with above-average growth in markets currently served by Nordson companies," said Edward P. Campbell, chairman and chief executive officer. "Over the three-year period ending April 30, 2006, Dage revenues and operating profit grew at annual rates of 24 percent and 69 percent, respectively. These growth rates are nearly identical to those of Nordson's Advanced Technology Systems segment, which since 2003 has grown revenues and operating profit at annual rates of 23 percent and 59 percent, respectively."

Campbell added, "Dage's operating margins during the first half of its fiscal 2007 were 21 percent. At current rates of growth and profitability, we expect Dage to be accretive to Nordson's fiscal year 2007 earnings per share."

Campbell went on to say, "Dage's growth potential is driven by increasing consumer demand for high performance and feature rich capabilities in today's electronic devices, such as MP3 players, cellular phones, PDAs, digital cameras and game consoles. This acquisition will add high-growth opportunities to our Advanced Technology Systems segment by continuing to strengthen our presence in high-tech, high-growth industries, such as area array packaging, which have fueled the above-market growth we have seen in this segment over the past year."

The acquisition is subject to review by the German Federal Cartel Office.

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