Dover Corporation (DOV - Free Report) has completed the acquisition of Wayne Fueling Systems Ltd. from Riverstone Holdings LLC for $780 million in cash. In addition to augmenting Dover’s portfolio, the transaction provides significant margin enhancement opportunities.
Headquartered in Austin, TX, Wayne is a global provider of fuel dispensing, payment, systems and aftermarket services for retail and commercial fuel stations with manufacturing operations across Sweden, China and Brazil. Backed by its advanced payment and systems solutions, Wayne is well positioned to capitalize on the emerging conversion of U.S.-based fuel retailers to Europay, MasterCard and Visa ("EMV") chip security technology. Through its wide network of distributors and service partners, Wayne sells its products in over 140 countries and is projected to generate revenues of approximately $550 million in 2016.
Wayne's product line is a synergistic fit with Dover’s OPW and Tokheim, particularly its U.S. dispenser, payment and systems businesses. Tokheim and OPW have been leaders in the retail fueling industry for more than a century. Following the acquisition, the combined business will offer an end-to-end solution that will benefit customers in the growing global retail fueling market. The transaction will enable Dover to fully capitalize on the high-growth EMV upgrade cycle underway in the U.S. Combination of Wayne's innovative product offerings with OPW and Tokheim will enable Dover to realize annualized retail fueling revenue of $1.4 billion.
To address the U.K. Competition and Markets Authority's ("CMA") concerns regarding the competitive overlap in U.K., Dover will divest Wayne's small distribution business in U.K in the near future.
The acquisition will have a negative impact of 7 cents per share in the fourth quarter of 2016, which includes Wayne’s operating earnings offset by deal costs, normal purchase accounting costs, as well as synergy related costs. However, in 2017 the buyout will be accretive to earnings, including costs to achieve synergies and normal purchase accounting amortization costs.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Dover Corporation (DOV - Free Report) has completed the acquisition of Wayne Fueling Systems Ltd. from Riverstone Holdings LLC for $780 million in cash. In addition to augmenting Dover’s portfolio, the transaction provides significant margin enhancement opportunities.
Headquartered in Austin, TX, Wayne is a global provider of fuel dispensing, payment, systems and aftermarket services for retail and commercial fuel stations with manufacturing operations across Sweden, China and Brazil. Backed by its advanced payment and systems solutions, Wayne is well positioned to capitalize on the emerging conversion of U.S.-based fuel retailers to Europay, MasterCard and Visa ("EMV") chip security technology. Through its wide network of distributors and service partners, Wayne sells its products in over 140 countries and is projected to generate revenues of approximately $550 million in 2016.
Wayne's product line is a synergistic fit with Dover’s OPW and Tokheim, particularly its U.S. dispenser, payment and systems businesses. Tokheim and OPW have been leaders in the retail fueling industry for more than a century. Following the acquisition, the combined business will offer an end-to-end solution that will benefit customers in the growing global retail fueling market. The transaction will enable Dover to fully capitalize on the high-growth EMV upgrade cycle underway in the U.S. Combination of Wayne's innovative product offerings with OPW and Tokheim will enable Dover to realize annualized retail fueling revenue of $1.4 billion.
To address the U.K. Competition and Markets Authority's ("CMA") concerns regarding the competitive overlap in U.K., Dover will divest Wayne's small distribution business in U.K in the near future.
The acquisition will have a negative impact of 7 cents per share in the fourth quarter of 2016, which includes Wayne’s operating earnings offset by deal costs, normal purchase accounting costs, as well as synergy related costs. However, in 2017 the buyout will be accretive to earnings, including costs to achieve synergies and normal purchase accounting amortization costs.
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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