Nordson Corporation’s Board of Directors Authorizes Additional $500 Million for Share Repurchase Program

Rhea-AI Summary

Nordson Corporation (NASDAQ: NDSN) announced a new share repurchase program allowing for the repurchase of up to $500 million in common shares, in addition to the $160 million remaining from a previous authorization. This decision reflects the Board's confidence in Nordson's growth strategy and consistent cash generation. The repurchase will be funded from operating cash flows and is aimed at enhancing shareholder value while allowing for long-term investments.

Positive

• Authorization for an additional $500 million share repurchase indicates strong confidence in the company's growth strategy.
• The continued cash generation highlights Nordson's robust operational performance.
• Potential for increased shareholder value through disciplined share repurchases.

Negative

• None.

WESTLAKE, Ohio--(BUSINESS WIRE)-- Nordson Corporation (Nasdaq:NDSN) today announced that its Board of Directors has authorized the repurchase of up to an additional $500 million of the Company’s outstanding common shares, adding capacity to the $160 million remaining from its 2018 Board authorization.

“The Board’s action reflects continued confidence in the execution of our Ascend strategy, designed to deliver top-tier growth with leading margins and returns,” said Nordson Executive Vice President and Chief Financial Officer Joseph Kelley. “Consistent cash generation is a strength of our business. We are pleased to return this value to our shareholders through annual dividends and disciplined share repurchases, particularly in this dynamic environment. We also will continue making investments to fund long-term organic and acquisitive growth opportunities.”

Shares may be purchased from time to time at prevailing prices, subject to market conditions, share price and other considerations. Purchases will be made on the open market pursuant to the applicable Securities Exchange Act Rules and will be funded from operating cash flows. Expected uses for repurchased shares include, but are not limited to, funding benefit programs including stock options, restricted stock and 401(k) matching. Shares repurchased will be treated as treasury shares until used for such purposes.

Nordson Corporation is an innovative precision technology company that leverages a scalable growth framework through an entrepreneurial, division-led organization to deliver top tier growth with leading margins and returns. The Company’s direct sales model and applications expertise serves global customers through a wide variety of critical applications. Its diverse end market exposure includes consumer non-durable, medical, electronics and industrial end markets. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in over 35 countries. Visit Nordson on the web at www.nordson.com, www.twitter.com/Nordson_Corp or www.facebook.com/nordson.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220906006043/en/

Lara Mahoney

Vice President,

Corporate Communications & Investor Relations

440.204.9985

Lara.Mahoney@nordson.com

Source: Nordson Corporation

FAQ

What is Nordson Corporation's latest stock buyback program?

Nordson has authorized up to $500 million for share repurchases, adding to the remaining $160 million from a previous program.

How does the share buyback affect Nordson's stock?

The buyback is expected to enhance shareholder value and could positively impact the stock price by reducing the number of outstanding shares.

What is the purpose of the $500 million share repurchase?

The repurchase aims to return value to shareholders and is funded by the company's operating cash flows.

When was the share repurchase program authorized?

The new buyback program was announced recently, reflecting the Board's ongoing confidence in the company's strategy.

How will Nordson finance the share repurchase?

The repurchases will be funded from operating cash flows.