Page 38 - Plastics News January 2021

Business news

Morgan Stanley Capital Partners Nordson announces Q4 results

invests in AWT Labels and
ordson Corpora t ion
Packaging Nreported results for the

fiscal fourth quarter ended
organ Stanley Capital October 31, 2020. Sales were
MP artners, part of $559 million, a 5% decrease
Morgan Stanley Investment compared to the prior year’s
Management, has completed an fourth quarter sales of $585
investment in AWT labels and million. The change in fourth
Packaging from Mason Wells, a quarter 2020 sales included a
Midwest-based private equity decrease of approximately 7%
firm. “We are thrilled to partner organic volume, acquisitions
with Morgan Stanley Capital contributed 1%, and a favorable effect from currency
Partners as we enter our next translation of approximately 2%.Operating profit in
phase of growth,” said Michelle the quarter was $37 million. The company intends
Zeller, President of AWT Labels & Packaging. “With MSCP’s to divest the non-strategic screws and barrels
support, expertise, deep industry knowledge and network product line within the Industrial Precision Solutions
in packaging, we plan to expand our current capabilities segment, which will strengthen the company’s ongoing
and geographic footprint while continuing to provide the earnings and profitable growth profile. This strategic
highest quality products to our customers.” portfolio transaction required a one-time, non-cash
Headquartered in Minneapolis, MN, AWT is a leading asset impairment charge of $87 million, which was
provider of labels and flexible packaging solutions recognized during the fourth quarter. Excluding this
focused on healthcare, personal care, food & beverage, non-cash impairment charge and other non-recurring
household, and OEM/ Industrial end markets. Founded charges associated with cost structure simplification
in 1976, AWT operates out of three facilities in the U.S. actions and amortization of the step-up in acquired
and holds a top three market position in the medical inventory, adjusted operating profit was $130 million,
device labels and clinical trials labels segments. Through or 23% of sales. EBITDA, which is defined as adjusted
its innovative product design approach and swift speed- operating profit plus depreciation and amortization,
to-market, AWT helps customers address mission-critical in the quarter totaled $159 million, or 29% of sales,
application needs. Eric Kanter, Managing Director of which represents a decrease of 5% from the prior year
Morgan Stanley Capital Partners said, “We are excited EBITDA of $168 million. Net income was $18 million, and
to partner with AWT and its talented management team. GAAP diluted earnings per share were $0.31 whereas
The team has built a phenomenal platform that serves the full year operating profit was $350 million and
attractive, defensive end markets with best-in-class diluted earnings per share were $4.27. Excluding the
R&D capabilities. We look forward to building upon the non-cash impairment charge, structural cost reduction
Company’s prior success by investing in assets, capabilities expenses, the step up in value of acquired inventory,
and the management team and continuing to deliver and discrete tax expense, adjusted operating profit was
innovative packaging solutions through organic initiatives $454 million and adjusted diluted earnings per share
and acquisitions.” Kanter will become Chairman of AWT as were $5.48, a 7% decrease from the prior year adjusted
part of the transaction. Michelle Zeller, President of AWT, diluted earnings per share of $5.87.Nordson President
stated, “We are thrilled to partner with Morgan Stanley and Chief Executive Officer Sundaram Nagarajan said,
Capital Partners as we enter our next phase of growth. “I am proud of the dedication shown by our global
With MSCP’s support, expertise, deep industry knowledge team through their ongoing commitment to superior
and network in packaging, we plan to expand our current customer service and continued deployment of the NBS
capabilities and geographic footprint while continuing to Next growth framework. Fourth quarter sales were the
provide the highest quality products to our customers.” strongest quarter of the year.

Plastics News Januar y 2021 38