Dover Corporation (DOV - Free Report) has closed its previously announced acquisition of Italy-based Finder for $145 million to strengthen the position of Pump Solutions Group in the energy market and enhance its global footprint.
Finder is now a part of Dover’s Pump Solutions Group, a global leader in pumps, systems and related technologies. It is an operating unit within the Fluid Systems platform of the Dover Engineered Systems segment. The segment contributed 42% of total Dover’s sales in 2012 and 44% in the first three quarters of 2013.
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.
Finder’s 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. In May the group 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.
Finder will 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 has been adding to Dover’s growth profile.
Dover will continue to benefit from its active acquisition pipeline, bookings and orders growth. The spin-off of certain parts of 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 third quarter. Dover’s sound balance sheet coupled with solid earnings growth should allow the company to continue its dividend hike and share repurchases in the years ahead.
Dover currently retains a short-term Zacks Rank #3 (Hold). Other stocks in the same industry with favorable Zacks ranks are Graham Corp. , Manitex International, Inc. (MNTX - Free Report) , and Flowserve Corp. (FLS - Free Report) , carrying a Zacks Rank #2 (Buy).
Ill.-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.