08:38 AM EDT, 05/28/2024 (MT Newswires) -- Nordson ( NDSN ) has agreed to acquire proprietary medical products manufacturer Atrion ( ATRI ) for $460 per share in cash, as the precision technology company looks to expand its medical portfolio to new markets and therapies, the companies said Tuesday.

The deal has an enterprise value of about $800 million, according to Nordson ( NDSN ). In a separate statement, Atrion ( ATRI ) said the transaction has an equity value of about $815 million, with the acquisition price reflecting a 15% premium to its 90-day average daily volume-weighted average stock price.

Atrion's ( ATRI ) shares rose 1.1% in recent premarket activity, while Nordson ( NDSN ) was marginally higher.

The transaction, which requires approval from regulators and shareholders, is expected to complete in the third quarter, before the end of Nordson's ( NDSN ) current fiscal year. Three of Atrion's ( ATRI ) largest investors, owning roughly 22% of the company, have agreed to vote their shares in favor of the deal, the company said.

"We have long admired Atrion's ( ATRI ) technology portfolio, and today's announcement represents a step forward in expanding our medical offerings for our customers," Nordson ( NDSN ) Chief Executive Sundaram Nagarajat said. "Leveraging our NBS next growth framework and medical business expertise, we see significant operational synergies, while supporting the long-term growth of the business."

The acquisition will give Nordson ( NDSN ) access to Atrion's ( ATRI ) product portfolio, which the company anticipates to expand its addressable market in infusion and cardiovascular therapies, and its three Food and Drug Administration-registered design and manufacturing facilities in the US. Nordson ( NDSN ) plans to finance the deal with cash on hand and newly issued debt.

Earlier this month, Atrion ( ATRI ) reported first-quarter net income of $1.59 a share, down from $1.98 the year before. Revenue rose to $47.3 million from nearly $40 million in the prior-year quarter. For full-year 2023, the company generated annual revenue of about $169 million.

"The multiple of over twenty times Atrion's ( ATRI ) 2023 (earnings before interest, taxes, depreciation and amortization) reflects the substantial value of the business my co-workers have worked so hard to build," Atrion ( ATRI ) CEO David Battat said. "I believe Nordson ( NDSN ) is a great home to continue to grow our business and to advance our people and products."