Nordson Corp. (NDSN) has bought Pennsylvania-based Fluortek, Inc., a plastic extrusion manufacturer to add medical tubing components to its product portfolio for complex medical devices.
The financial terms of the deal weren’t disclosed. Flurotek, which provides custom dimensioned tubing to the medical device industry, will become part of the Nordson Medical product line within Nordson’s Advanced Technology Solutions segment.
“As Nordson Medical continues to expand its differentiated product offerings, the acquisition of Fluortek enhances our ability to deliver critical components that enable our customers’ most complex medical device innovations,” said Nordson Executive VP Jeffrey Pembroke. “This offering further supports Nordson Medical’s position as a leading full-service solution provider of component and device manufacturing capabilities across the interventional, minimally invasive and surgical medical device landscape.”
Shares in Nordson have seen their value almost double since March 23. The stock fell 1.6% to $185.36 as of Monday’s close. It was up 0.9% in Tuesday’s pre-market trading.
DA Davidson analyst Matt Summerville last week raised the stock’s price target to $200 from $185 and maintained a Buy rating after Q2 earnings beat expectations.
Nordson “has seen some order volatility in recent weeks, but its consumer non-durables and medical end markets are performing well, helping to offset more cyclically sensitive automotive, general industrial, and electronics markets,” Summerville wrote in a note to investors.
Overall, most Wall Street analysts share Summerville’s bullish rating outlook. Out of 6 recent reviews, 5 boast Buys and 1 assigns a Hold adding up to a Strong Buy consensus. The $203 average price target indicates analysts see more modest upside potential of 9.5% in the coming 12 months. (See Nordson stock analysis on TipRanks).