Nordson Divests Design & Development Units to Quasar Medical

Nordson Corporation NDSN recently divested its design and development contract manufacturing business units to Quasar Medical. The financial terms of the transaction have been kept under wraps.

Nordson’s shares declined 1.1% yesterday to eventually close the trading session at $222.70.

Based in Galway, Ireland and Tecate, Mexico, Nordson Medical's design and development contract manufacturing businesses are engaged in providing a comprehensive solution for complex interventional devices in the medical industry.

Inside the Headlines

With this buyout, the Galway facility will now operate as Quasar Medical’s innovation center for major processes in manufacturing advanced medical devices, including the development of extrusions, balloons, braiding and complex catheters. The Tecate facility will serve as a manufacturing hub that includes packaging, coating, molding and automated processes.

This divestment is in sync with Nordson’s business transformation strategy, which includes disposing of businesses to unlock value for its shareholders. The divestiture will enable NDSN to focus more on its core business and optimize its portfolio within the Medical and Fluid Solutions segment. This will enable Nordson to strengthen its medical component portfolio, which includes several offerings such as cannulas, catheters, medical balloons and fluid management solutions.

Zacks Rank & Price Performance

Nordson, with a $12.5 billion market capitalization, currently carries a Zacks Rank #2 (Buy). NDSN is witnessing solid momentum in the Advanced Technology Solutions segment. Strong customer demand for the nonwovens, packaging, consumer non-durable and optical sensors product lines is aiding the company. It aims to expand its market share, product offerings and customer base through strategic acquisitions. 

In the past month, the company’s shares have risen 4.8% compared with the industry’s growth of 2.4%.

The Zacks Consensus Estimate for NDSN’s fiscal 2025 (ending October 2025) earnings is pegged at $10.07 per share, up 0.4% from the 60-day-ago figure.

Other Stocks to Consider

Some other top-ranked companies from the same space are discussed below.

Flowserve Corporation FLS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FLS delivered a trailing four-quarter average earnings surprise of 5.5%. In the past 60 days, the Zacks Consensus Estimate for FLS’ 2025 earnings has increased 5.6%.

Graham Corporation GHM currently sports a Zacks Rank of 1. GHM delivered a trailing four-quarter average earnings surprise of 64%.

In the past 60 days, the consensus estimate for Graham’s fiscal 2025 earnings has increased 15.4%.

RBC Bearings Incorporated RBC presently carries a Zacks Rank of 2. It delivered a trailing four-quarter average earnings surprise of 3.8%.

In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2026 (ending March 2026) earnings has risen 1.4%.

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This article originally published on Zacks Investment Research (zacks.com).

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