Inside the Deal

Baird served as exclusive financial advisor to Capvis and other shareholders on the sale of ARAG to Nordson Corporation. Combining its expertise in flow technology and precision agriculture, Baird successfully assisted ARAG’s shareholders on this transaction. The transaction is subject to customary closing conditions.

Read more about this transaction below in our latest Inside the Deal.

ARAG Is Acquired by Nordson

Background & Situation

• ARAG is a global market and innovation leader in the development, production and supply of precision control systems and smart fluid components for agricultural spraying
• The Company offers a comprehensive and differentiated portfolio of precision agriculture spraying solutions which are further supported by proprietary software and data management capabilities
• ARAG is a vital longstanding technology partner to a diverse global blue chip customer base which it serves through seven manufacturing and distribution locations globally and a sales network addressing more than 80 countries
• Under Capvis’ ownership and with Victor Gottardi as CEO, ARAG has invested in its management structure, global footprint and R&D as well as established ARAG in North America
• ARAG sought an experienced industrial partner as its next shareholder with a strong North American network to help drive the next stage of growth of the business

Baird Value-Add

• Baird leveraged its strong sector knowledge in flow technology and precision agriculture as well as its relationships with strategic buyers in these spaces
• In November 2022, Baird hosted ARAG in the private company track at its 2022 Global Industrial Conference and facilitated initial discussions with select highly interested parties
• Baird managed strong inbound interest coming out of the conference and ran a customised strategic buyer focused process that maintained competitive tension throughout
• Baird deployed a globally integrated team across the UK, German and US offices that brought the most relevant transaction experience, industry relationships and institutional knowledge to the table
• Baird secured a strong outcome for ARAG’s shareholders of 16.5x ARAG’s projected 2023 EBITDA

Outcome

• In June 2023, despite a challenging macro environment, Capvis and other shareholders announced the sale of ARAG to Nordson Corporation, a US-based innovative precision agriculture technology company
• Through the acquisition of ARAG, Nordson has entered the high-growth end market of precision agriculture, where Nordson will be able to leverage its strong brand and commercial infrastructure to expand ARAG’s limited presence in the North American market and more broadly globally
• Upon completion of the acquisition, ARAG will operate as a division of Nordson’s Industrial Precision Solutions

We are delighted to have had the opportunity to partner with the founding families of ARAG and the management team. Through our investment in 2020 we were able to support the growth and transition of ARAG to the level it is today. As a much larger and more internationally positioned business with significant electronic and software drivers, ARAG is best positioned today to continue its impressive growth trajectory with Nordson in the field of precision spraying solutions. We wish Nordson and the management team well for the future.

Andreas Simon, Partner and Head of Industrial Technology, Capvis

Precision dispensing is a core capability of Nordson. Over nearly 70 years, we’ve expanded that expertise beyond our beginnings in industrial applications into packaging, product assembly, nonwovens, electronics, medical and more. Through the acquisition of ARAG, a market and technology leader, we have entered the high-growth end market of precision agriculture. Strategically, Nordson is attracted to companies with differentiated technologies and a customer-centric model. ARAG’s innovative precision spraying, dispense and software solutions help customers boost crop yields while sustainably reducing the usage of fertilizers and chemicals. We are looking forward to welcoming ARAG’s nearly 700 global employees to Nordson upon the close of this deal.

Sundaram Nagarajan, President and CEO, Nordson

This transaction is another step forward in our Ascend Strategy, fitting our strategic and financial acquisition criteria well. In the fast-growing precision agriculture end market, ARAG’s differentiated precision technology portfolio generates Nordson-like gross margins. Well established and known in Europe and South America, we will be able to leverage Nordson’s strong brand and commercial infrastructure to expand ARAG’s limited presence in the North American market.

Jeffrey Pembroke, EVP, Nordson Industrial Precision Solutions

The acquisition of ARAG emphasizes Nordson’s disciplined capital deployment strategy, which is focused on high-quality niche leaders serving attractive growth markets that are additive to Nordson’s existing lines of business and support long-term shareholder value creation.

Joseph Kelley, EVP and CFO, Nordson

For additional information about this transaction, please contact:

Nick Sealy
+44-20-7667-8370
nsealy@rwbaird.com

Joe Packee
+1-414-298-7644
jpackee@rwbaird.com

Mike Lindemann
+1-414-298-7408
mlindemann@rwbaird.com

Oliver Meyer
+49-69-1301-4922
omeyer@rwbaird.com

Dan Pelech
+1-414-298-1940
dpelech@rwbaird.com

Mantas Wachendoerfer
+49-69-1301-4941
mwachendoerfer@rwbaird.com