Dover Corporation (DOV - Analyst Report) will acquire Italy-based Finder to strengthen its Pump Solutions Group’s position in the energy market and enhance its global footprint. The transaction, subject to customary regulatory approvals, is expected to be completed in the fourth quarter.
Following the acquisition, Finder will be integrated into The Pump Solutions Group, an operating unit within Dover’s Engineered Systems segment. The segment contributed 42% of total Dover’s sales in 2012 and 44% in the first half of 2013. The Pump Solutions Group is a global leader in pumps, systems and related technologies.
The Finder Group is one of the leading companies in Europe engaged in the design and manufacture of engineered pumps and systems for industrial applications that require heavy duty products and advanced technical solutions. Its main products are sold globally to major engineering companies and to end users commanding dominating position in the fields of oil & gas, nuclear energy, desalination, chemical, pharmaceutical and food. Finder’s sales network is spread across all continents, encompassing over 75 countries through direct sales offices, local agents and distributors.
The acquisition is a strategic fit for the Pump Solutions Group. The group recently strengthened its Blackmer operation with the acquisition of Australia-based Ebsray Pumps Pty. Ltd, a market leader of pumps for a wide range of industrial applications in May.
Finder will immediately provide the group with the product portfolio, application expertise, customer reference list, and key certifications required to serve the fast-growing upstream, midstream and downstream oil & gas markets. Finder will also expand Dover’s presence in key growth markets in Europe, the Middle East and the Americas. With an estimated revenue of approximately $80 million in 2013, it will add to Dover’s growth profile.
Dover will continue to benefit from its active acquisition pipeline, bookings and orders growth. The spin-off of certain part of its communication technologies businesses into a standalone, publicly-traded company will simplify Dover’s business profile and enable it to focus on its key growth spaces - Energy, Fluids, Refrigeration & Food Equipment, and Printing & Identification.
The company’s bookings and backlog have increased from the prior-year levels in the second quarter. Dover’s sound balance sheet coupled with solid earnings growth should allow the company to continue its dividend hikes and share repurchases in the years ahead.
Dover currently retains a short-term Zacks Rank #2 (Buy). Other stocks in the same industry with favorable Zacks ranks are Gorman-Rupp Co. (GRC - Snapshot Report) and Graham Corp. (GHM - Snapshot Report) , both carrying a Zacks Rank # 1 (Strong Buy), and Barnes Group Inc. (B - Snapshot Report) , with a Zacks Rank #2 (Buy).
Illinois-based Dover is an industrial conglomerate producing a wide range of specialized industrial products and manufacturing equipment. It operates through four major operating segments: Communication Technologies, Energy, Engineered Systems and Printing & Identification.