DOWNERS
GROVE, Ill., Oct. 4,
2023 /PRNewswire/ -- Dover (NYSE: DOV) announced today
that it has entered into a definitive agreement to acquire the
business of FW Murphy Production Controls, LLC ("FW Murphy") (a
subsidiary of privately-owned Genisys Controls LLC) for
$530 million in cash. The transaction
is expected to close in the fourth quarter of 2023, subject to
customary closing conditions, including receipt of regulatory
approvals. Following the closing of the transaction, FW Murphy will
become part of the Dover Precision Components ("DPC") operating
unit within Dover's Pumps & Process Solutions segment
("DPPS").
Founded in 1939 and headquartered in Rosenberg, Texas, FW Murphy is a leading
provider of control, remote monitoring, digital-twin-based
predictive maintenance, and adaptive performance optimization
components, solutions, and instrumentation for reciprocating
compressors and associated drive systems. FW Murphy's solutions are
used in natural gas production, transportation, and industrial use
markets, as well as in emerging hydrogen and carbon capture
applications. The business is expected to generate approximately
$120 million in revenue in 2023, with
substantial aftermarket and recurring revenue. Net of positive tax
attributes, the purchase price represents approximately 13x of FW
Murphy's 2023 Adjusted EBITDA, with margin accretive to Dover's
consolidated margin.
The acquisition adds highly complementary offerings to DPC's
Cook Compression® product line, enhances DPC's revenue
mix with digital and recurring revenue streams, helps position DPC
for leadership in compression technologies for clean energy, and
allows DPC to capitalize on the growing adoption of next-generation
remote monitoring, predictive maintenance, and real-time
performance optimization solutions.
"FW Murphy is a highly regarded technological pioneer and leader
in controlling and optimizing the performance of reciprocating
compressors and engines. Adding its portfolio of solutions will
allow DPC to offer reciprocating compression customers an
unparalleled choice of technologies to improve efficiency, promote
safety, reduce their carbon emissions, and accelerate clean energy
adoption. We expect to achieve tangible growth synergies from our
combined product offerings and global go-to-market channels," said
Marcell Ulrichs, President of
DPC.
Dover's President and Chief Executive Officer, Richard J. Tobin, said, "The acquisition of FW
Murphy has all the hallmarks of value-creating bolt-on acquisitions
that have been an integral part of Dover's strategy for decades. FW
Murphy is a well-run, privately-owned technological leader with a
runway for sustained profitable growth. We are excited to add a
high-quality asset with an attractive financial profile and
value-creation potential to DPPS."
About Dover:
Dover is a diversified global manufacturer and solutions
provider with annual revenue of over $8
billion. We deliver innovative equipment and components,
consumable supplies, aftermarket parts, software and digital
solutions, and support services through five operating segments:
Engineered Products, Clean Energy & Fueling, Imaging &
Identification, Pumps & Process Solutions and Climate &
Sustainability Technologies. Dover combines global scale with
operational agility to lead the markets we serve. Recognized for
our entrepreneurial approach for over 65 years, our team of over
25,000 employees takes an ownership mindset, collaborating with
customers to redefine what's possible. Headquartered in
Downers Grove, Illinois, Dover
trades on the New York Stock Exchange under "DOV." Additional
information is available at dovercorporation.com.
About Dover Precision Components:
Dover Precision Components delivers performance-critical
solutions for rotating and reciprocating machinery across the oil
& gas, power generation, marine, industrial, chemical, and
general processing markets. Comprising the Waukesha Bearings,
Bearings Plus, Inpro/Seal, and Cook Compression brands, our
portfolio includes hydrodynamic bearings, active magnetic bearings,
system and bearing protection, reciprocating compressor valves,
sealing technologies, pistons, rods, and more. Each solution is
custom-engineered to provide optimum efficiency, reliability, and
productivity, and is backed by comprehensive aftermarket services.
Dover Precision Components serves its global customer base through
facilities in North America,
Europe, Asia, and the Middle
East, as well as technical sales representatives around the
world. Additional information is available at
doverprecision.com.
Forward-Looking Statements:
This press release contains "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended, including statements regarding the anticipated
effects of the transaction. All statements in this document other
than statements of historical fact are statements that are, or
could be deemed, "forward-looking" statements. Forward-looking
statements are subject to numerous important risks, uncertainties,
assumptions, and other factors, some of which are beyond the
Company's control. Factors that could cause actual results to
differ materially from current expectations include, among other
things, general economic conditions and conditions in the
particular markets in which we operate, changes in customer demand
and capital spending, competitive factors and pricing pressures,
our ability to develop and launch new products in a cost-effective
manner, and our ability to realize synergies from newly acquired
businesses. For details on the risks and uncertainties that could
cause our results to differ materially from the forward-looking
statements that may be contained herein, we refer you to the
documents we file with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the year ended
December 31, 2022, and any
subsequently filed Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K. These documents are available from the SEC,
and on our website, www.dovercorporation.com. The Company
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Investor Contact:
Jack
Dickens
Senior Director – Investor Relations
(630) 743-2566
jdickens@dovercorp.com
Media Contact:
Adrian Sakowicz
Vice President – Communications
(630) 743-5039
asakowicz@dovercorp.com
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SOURCE Dover