- The transaction values ARAG at an enterprise value of €960m
- Capvis acquired ARAG in 2020
- Capvis is a private equity investor based in Baar, Switzerland
Capvis has entered a definitive agreement to sell ARAG Group and its subsidiaries to Nordson Corporation in an all-cash transaction that values ARAG at an enterprise value of €960 million.
ARAG is a producer and supplier of precision control systems and smart fluid components for agricultural spraying. The company is based in Rubiera, Italy.
ARAG is expected to generate €155 million in sales in FY2023. The transaction reflects a valuation of around 16.5 times ARAG’s projected 2023 EBITDA, according to a release.
Capvis acquired ARAG in 2020.
“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,” said Andreas Simon, Capvis partner and head of Industrial Technology.
ARAG will operate as a division in Nordson’s Industrial Precision Solutions segment, upon completion of the acquisition.
The transaction is expected to be completed in Nordson’s fourth quarter fiscal 2023 and will be funded via a combination of cash on hand and financial debt, said Joseph Kelley, executive VP and chief financial officer, Nordson.
Nordson is a precision technology company headquartered in Westlake, Ohio.
Capvis is a private equity investor that acquires majority stakes in medium-sized technological firms in Switzerland, Germany, Austria, and Italy. The firm is based in Baar, Switzerland.