Dover Corporation

Logout

Our progressive focus fuels both organic growth and successful acquisitions, harnessing our scale to apply our precise expertise to every industry we serve.


Overview

Dover’s acquisition strategy is focused on driving growth by investing capital in our four strategic growth spaces: energy, engineered systems, fluids & refrigeration and food equipment.


Culture and Operating Philosophy

Dover Corporation has a long and proud history of growth, both organically and by making successful acquisitions. For more than 50 years, Dover has acquired literally hundreds of manufacturing companies. This successful acquisition strategy has benefited not only Dover and its shareholders, but also the owners, employees and customers of the acquired companies.


Seeking Acquisitions

In seeking potential acquisition candidates, Dover proactively looks for companies that are both “Dover-like” and either fit strategically with one or more of our existing growth segments or industry spaces, or can be a strategic addition to one of our platforms or growth spaces. Dover also seeks to acquire opportunistically where companies approach Dover to assist in generational changes of ownership, provide investment capital for growth, leverage operating capabilities, or offer technical support.

Dover acquisitions don’t follow an identical pattern; some companies become part of an existing Dover operating company as “add-on” companies or product lines, and others of sufficient size and scale are acquired as “stand-alone” acquisitions.

Both types of acquisitions have worked extremely well for Dover and the companies involved, and one of these may be right for your company.

“At Dover we have a renewed focus on driving growth and shareholder value through acquisitions that leverage our key internal strategic, financial and integration disciplines and capabilities.”

Bob Livingston 
     President and CEO

Acquisition Contact Information

Stephen R. Sellhausen
Senior Vice President,
Corporate Development & Strategy

P: +1 (630) 743-5003
F: +1 (630) 743-2671

James Hirchak
Manager, Corporate Development
P: +1 (630) 743-5015

Lu Tian
Manager, Corporate Development
P: +1 (630) 743-5111

Grace Xiang
Manager, Corporate Development
P: +1 (630) 743-5053

3005 Highland Parkway
Downers Grove, IL 60515

Michael Zhang
President – Asia
Unit 1-11, 19th Floor
Chamtime Int'l Financial Center
1589 Century Avenue
Shanghai 200122, China
P: + 86 (21) 6081-2888
F: + 86 (21) 6163-3598


What Makes a “Dover-Like” Company

Starting in 1955 with four companies, Dover today comprises 28 independent operating units managed as focused growth spaces. Each of Dover’s existing operating units has certain characteristics that make it “Dover-like,” and these are the attributes we are seeking in acquisition candidates. Most are number one or two in their niche market. Each is a manufacturer of highly engineered, value-added industrial components or systems that are typically purchased by industrial or commercial customers. They have leading and strong industrial brands as well as proprietary technology or intellectual property. We also prefer companies that are in noncyclical industries with attractive aftermarket and recurring revenue and service opportunities. Importantly, they have a strong customer focus and intimacy, delivering premium products and services that are highly valued by the customers. As a result of these “Dover-like” characteristics, these companies exhibit attractive growth, strong operating margins and free cash flow.

Dover also seeks strong and skilled entrepreneurial management teams with a proven track record of success, and we give them the independence to develop and execute their operating strategies based on their knowledge of their markets, customers and operations. Dover complements its entrepreneurial operating management by providing capital for growth and by leveraging Dover’s scale in global sourcing, regional infrastructure, leadership and people development, and other support services.

Dover has found that quickly integrating the parts of a business that unlock its earnings power while allowing skilled entrepreneurs and managers the scope to do what they do best—run their companies and find new ways to grow them—has paid off handsomely for Dover and its shareholders.

THROUGHOUT THE COMPANY’S HISTORY, THERE HAVE BEEN ONLY SIX CEOS.

Following Fred Durham, pictured on the far left, as CEO came Tom Sutton, seated right, from 1964 to 1981. He was followed by Gary Roubos, seated left, from 1981 to 1994, then Tom Reece, standing right, took the helm from 1994 to 2004. Ron Hoffman, standing left, was CEO from 2005 to 2008. Our current CEO, Bob Livingston, far right, took over in 2008.

A Proven Formula for Success

To understand Dover’s operating style, it helps to know something of the company’s history and the role played by its leaders over the years. Dover traces its roots to a group of investors led by George Ohrstrom, Sr.

A high-flying investor in the 1920s who, like many others, reaped some failures in the 1930s, Ohrstrom ultimately hit upon a conservative but successful investment strategy: He sought out financially successful family or closely held businesses whose owners not only wished to monetize their assets but also hoped to provide a secure future for their employees and remain personally involved with their companies.

At this stage in his life, Ohrstrom had little interest in presiding over complex bureaucracies. He wanted a group of modestly sized, profitable enterprises run by first-class people who understood their businesses and customers and who could continue to be successful.

Ohrstrom’s earliest acquisitions—Rotary Lift (a manufacturer of automotive lifts), C. Lee Cook (a manufacturer of compressor components), Norris (a manufacturer of oil and gas production equipment), and Peerless (a manufacturer of gas-fired space heaters)—each fits this description.

They had a simple approach to manufacturing products for niche markets. Each was highly profitable with strong cash flow. Each would continue to be run by the same management team after joining Dover.

These four companies combined to form Dover Corporation via an Initial Public Offering (IPO) in 1955. From this nucleus, the Dover culture has been crafted by the six CEOs succeeding George Ohrstrom, who died shortly after the IPO. While preserving the founding philosophy, each leader has made his own indelible contribution to building the Dover of today.

Fred Durham, Dover’s first CEO, set the example. Durham, who had sold C. Lee Cook to Ohrstrom and remained as president, firmly believed that the key jobs at Dover were the presidents at each of the operating companies.

Tom Sutton, Durham’s successor and the company’s second CEO, had previously been president of Dover’s OPW business. Another committed advocate of decentralized management, Sutton was instrumental in Dover’s significant growth during his 15-year term. In order to supplement internal growth, Sutton focused on attracting new companies to Dover and initiated the active acquisition program that remains a cornerstone of Dover’s growth strategy.

Gary Roubos, Dover’s third CEO, joined Dover in 1975 when it acquired Dieterich Standard, a company in which he had a large ownership interest. Dover grew significantly during the Roubos years and a number of building blocks were put in place, such as the long-term incentive compensation program and the organizational foundation for Dover’s segment structure.

Tom Reece succeeded Gary in 1994. Tom joined Dover when Ronningen-Petter was acquired in 1968. Over the years, Tom served as president of two other Dover companies—
DE-STA-CO and Norris. During the Reece years, Dover accelerated its growth by strategic add-on acquisitions and international expansion.

Ron Hoffman, Dover’s fifth CEO, joined Dover when Tulsa Winch, which he owned, was acquired in 1996. Ron authored the PERFORMANCECOUNTS initiative and spearheaded the 4 Segment/6 Platform organization.

Bob Livingston, Dover’s sixth and current CEO, joined Dover in 1983 when K&L Microwave, of which Bob was a senior financial executive, was acquired. Over the years, Bob has served as president of a Dover operating company and president of the Dover Engineered Systems segment. Under Bob’s leadership, Dover has a renewed focus on improving total shareholder returns by leveraging its management, capital and portfolio strengths along with a proactive strategic acquisition program.

Of our six CEOs, three sold their companies to Dover and all have been presidents of Dover companies.

An Organization of Leaders, Linked by Trust and Integrity

The Dover culture is founded on trust based on mutual respect. At Dover, the company presidency is typically not just a stepping stone to another position. Rather, it is often the pinnacle of importance for each individual company and for Dover itself. With guidance from segment leaders, Dover’s company presidents set the direction for their own companies, make their own decisions, and nurture and grow their own organizations. They run their businesses like they own them.

The expectation is, of course, for excellence. Our leaders have long term financial incentives designed to encourage continued growth of their businesses. These incentives are tied to growth of earnings and free cash flow and continuous improvement of internal total shareholder return. AND ALWAYS . . . INTEGRITYCOUNTS — Dover’s code of conduct and ethics is equally as well known and no less important. We expect and require that all management and employees adhere to the highest levels of ethical conduct and behavior.


Searching for the Right Fit

At Dover, “high-quality earnings and free cash flow growth” are key factors in increasing shareholder value. That’s why our growth strategy can be simply stated: We support the growth plans of our existing businesses while utilizing our strong excess cash flow to make acquisitions that are the right strategic fit for Dover.

In searching for acquisitions that have the right strategic fit for Dover, we will continue to stick with many aspects of our proven formula for success, including seeking “Dover-like” businesses and retaining Dover’s entrepreneurial management culture and operating philosophy. At the same time, we have enhanced our acquisition efforts by more proactively seeking strategic add-on opportunities, focusing on growing larger global platforms, and looking more closely for potential valuecreating synergies.

Although acquisitions at Dover never follow an identical pattern, they tend to fall into two broad categories, “add-ons” that will become part of an existing Dover stand-alone company, and “stand-alones,” that become independent operating companies. Either path to Dover can be appropriate, depending on the circumstances of the individual companies. Both acquisition models have worked very well in the past and can be differentiated this way:

ADD-ON ACQUISITIONS

The characteristics of these companies can vary greatly. The primary standard here is the strategic fit of the acquisition candidate with one of our existing companies. Unlike stand-alone acquisitions, these add-on acquisitions should offer synergistic opportunities to improve performance. True synergistic benefits can be measured in terms of increased market penetration and revenues and tangible cost reduction opportunities. In some cases, very few changes are made to the acquired business since its operations and products are viewed as complementary. At other times, add-on companies are integrated extensively with an existing company, and significant changes are introduced. Since add-on acquisitions become part of an existing Dover company, that company president leads the acquisition team.

STAND-ALONE ACQUISITIONS

Typically, these are larger businesses that fit the “Dover-like” business model but offer more modest synergies with an existing Dover company. Stand-alone acquisitions report to Segment leaders who, in turn, lead the acquisition team. The criteria used to judge these acquisition opportunities are necessarily strict, and require Dover’s ability to judge the capability of, and then rely on, the existing management team.

Our approach has generally been to make few changes in stand-alone acquisitions and to have the ownership transition be virtually transparent to the marketplace. We look at stand-alone candidates as strategically enhancing one of our four market segments while offering opportunities for further growth both organically and via additional add-on acquisitions


What We Look For

We seek manufacturers of high-value-added (product design/intellectual property or manufacturing process), engineered industrial products whose performance is critical to the customer or have defensible differentiation, and whose markets have high barriers to entry.

Our focus is on industrial components and products sold to a broad customer base of industrial and/or commercial users, with recurring revenue characteristics very desirable.

We prefer companies that are market leaders with either a number one or strong number-two market position in their respective markets or product areas, and that have longer product life cycles with low or moderate market and revenue volatility.

Companies should have a strong ethic of focusing on customers, including excellent customer relationships and intimacy, and providing high-value-added customer solutions.

Candidates should have strong regional or national distribution with existing or potential for global distribution and, particularly for stand-alone acquisitions, strong growth potential.

FINANCIAL

Since we seek market leaders, we generally look for outstanding operating financial performance that can be built upon. The ability to achieve EBITs above 15% are the norm in Dover operating companies. We also expect that any business we own will generate significant growth over time.

"Add-on" business or product lines can be of any size if they are a good strategic fit with one of Dover's key strategic growth spaces or an existing Dover operating company. We look for synergy opportunities and the ability to add value to the acquisition. Management continuity for add-ons depends on the size and the extent to which the acquisition will be integrated with the acquiring Dover company.

"Stand-alone" businesses should generally have revenue of $100 million or more. Stand-alone acquisitions should fit within one of Dover's four operating segments (Energy, Engineered Systems, Fluids, or Refrigeration & Food Equipment) or be focused growth platforms to leverage the strengths of the Dover organization. Management skill and continuity is even more critical for stand-alone acquisitions.

We are typically cash buyers but will entertain a tax-free exchange for Dover stock. We expect to do a thorough due diligence review, sign a fair contract, and close promptly following signing a letter of intent providing a period of exclusivity within which to complete the transaction.

MANAGEMENT

Dover seeks to buy businesses that typically have strong management teams in place. The Dover culture and philosophy expects the operating management team to own product development, manage the customer relationships, and operate the business as if they own it. Dover will assist them by leveraging the strengths of the Dover organization (global sourcing, regional infrastructure, leadership and people development, and other support services). We have long-term financial incentives designed to encourage continued growth of the business.

Our judgment on the skill, energy, ethics, and compatibility of the top executives at each acquisition candidate is one of the key factors in our decision-making.

Dover buys companies for the long term, with a focus on growing global platforms. We do not have a "portfolio" mentality.


Recent Acquisitions

2014

CSAT
by Markem-Imaje
Germany-based manufacturer of electro-photography and drop-on-demand piezo ink jet printing systems for the pharmaceutical and labeling industries.

MS Printing Solutions
by Dover Printing & Identification
Italian-based manufacturer and distributor of innovative digital ink jet printing systems and associated consumables serving the textile and specialty material markets.
msitaly.com

2013

Ebsray Pumps
By Pump Solutions Group
Manufacturer of rotary pumps in vane, regenerative turbine and internal gear technologies serving the energy (LPG), chemical, general industrial, and military markets in Australia, Southeast Asia, and Europe.
ebsraypumps.com.au

Curotto-Can, Inc.
by Environmental Solutions Group
Manufacturer of automated front end loader for refuse collection vehicles.
thecurottocan.com

Klaus Enterprise, Ltd.
by Cook Compression
Canadian designer and manufacturer of gas compressor components and provider of associated repair services.
klaus.ca

RSI Systems, LLC
by Markem-Imaje
Leading DOD thermal inkjet (TIJ) printer integrator for 2D variable inline printing and other high resolution printing applications.
rsipro.com

Source Technologies
(Thermal Printer business)
by Datamax-O’Neal
Designer and manufacturer of thermal stationery barcode printers.
sourcetech.com

SPIRIT Global Energy Solutions®
by Norris Production Solutions
Provides customers solutions for optimizing production of rod-pumped wells through innovative products, services, and training including: pump-off controllers, variable frequency drives, patented down hole gas separators, patented down hole sand/ solid separators, and experienced rod pump service technicians and comprehensive instruction in artificial lift.
spiritenergysolutions.com

Fibrelite
by OPW Group
Manufacturer of light weight composite access covers and fiberglass reinforced containment sumps for gasoline dispensers and underground storage tanks for retail fueling sites.
opwglobal.com

Kungsors Plast AB ("KPS")
by OPW Group
Manufacturer of high density polyethylene (HDPE) fusion underground piping systems for retail fueling sites.
opwglobal.com

LianYungGang JUMP
by OPW Group
Chinese-based manufacturer of top loading, bottom loading, automated and pneumatic loading arms and systems, and accessories for LNG, LPG and petroleum applications.
opwglobal.com

Finder Pompe
by PSG
Italian-based provider of engineered pumps (API centrifugal, piston and twin screw), spare parts and related services for critical applications in oil & gas, power generation and general industrial processes.
finderpumps.com

2012

Quattroflow® Fluid Systems
by Pump Solutions Group
Manufacturer of innovative positive displacement pumps incorporating a four-diaphragm / piston design primarily serving the pharmaceutical and biotech industries.
quattroflow.com

Maag Group
by Pump Solutions Group
Highly engineered gear pumps and filtration systems for the plastics, chemical, petrochemical and food industries.
maag.com

Production Control Services
by Norris Production Solutions
Developer, manufacturer and provider artificial lift and production optimization products, including plunger lift, gas lift, nitrogen generation and well site automation.
pcslift.com

Anthony International
by Hillphoenix
Manufacturer of specialty glass, commercial glass refrigerator and freezer doors, lighting systems and display equipment.
anthonydoors.com

Power Soak Systems, Inc.
by Unified Brands
Manufacturer of continuous motion ware washing systems, serving the quick serve, casual dining and institutional foodservice markets.
powersoak.com

UPCO, Inc.
by Norris Production Solutions
Manufacturer of steel sucker rods and accessories used in the artificial lift segment of the oilfield services industry.
upcoinc.com

2011

Harbison-Fischer, Inc.
by Norris Production Solutions
Designer and manufacturer of down-hole rod pumps and related products for the oil & gas market.
hfpumps.com

Dosmatic Inc.
by Hydro Systems
Manufacturer of environmentally friendly, non-electric chemical metering equipment for the water treatment, sanitation, hygiene, horticulture, food processing, chemical manufacturing, animal health, pest control and vehicle wash markets.
dosmatic.com

EnviroGear
by Pump Solutions Group
Designer, manufacturer and supplier of seal-less internal gear pumps and related equipment that serve a broad array of market applications including chemical, petrochemical and food processing.
envirogearpump.com

Sound Solutions
by Knowles Electronics
Designer and Manufacturer of dynamic speakers and receivers for cell phones and other consumer electronics.
knowles.com

Oil Lift Technology
by Norris Production Solutions
Designer and Manufacturer of
progressing cavity pump equipment, gear drives, belt drives, Rod Lock© BOPs, hydraulic power packs, electric generators, pump off controllers and well management SCADA systems.
oillifttechnology.com

Advansor A/S
by Hillphoenix
Denmark-based designer & manufacturer of HFC-free, CO2 transcritical refrigeration and heat pump systems for supermarkets and light industrial applications.
advansor.dk

RedScrew® Pump Company
by Pump Solution Group
China-based designer & manufacturer of twin and triple rotor screw pumps, as well as multiphase and specialty pumps that serve multiple markets including oil & gas, petro-chemical, and marine.
redscrewpump.com

2010

BSC Filters
by Ceramic & Microwave Products Group
UK-based designer and manufacturer of military quality microwave filters, diplexers, waveguide and coaxial passive communication components.
bscfilters.com

Chemilizer
by Hydro Systems
Manufacturer of non-electric volumetric dispenser equipment for agriculture, landscaping, horticulture, water treatment, jan-san and vehicle care.
chemilizer.com

Intek Manufacturing
by Unified Brands
Designer and manufacturer of steam equipment (steamers, kettles, braising pans) focused on the education market.
intekllc.com

Dynalco – Diagnostic Product Line
by Windrock
Manufacturer of monitoring and diagnostic equipment for reciprocating machinery in the natural gas, oil, petrochemical, marine and power generation industries.
windrock.com

Gear Products, Inc.
by Tulsa Winch
Manufacturer of worm gear and planetary hoists, rotation drives, rotation bearings and hydraulic pump drives for OEM's, serving the utility, construction, forestry, marine, and mining markets.
gearproducts.com

KMC Inc. & Bearings Plus Inc.
by Waukesha Bearings
Leaders in the design, analysis and manufacturing of engineered fluid film bearings and seals for niche applications.
bearingsplus.com

2009

Tyler Refrigeration
by Hillphoenix
Designer & manufacturer of commercial refrigeration systems for the food retail industry.
hillphoenix.com

Mechanical Field Services
by Cook Compression
Turnkey repair, maintenance and overhaul services for compressors, engines, pumps, turbines and other reciprocating and rotating equipment.
cookcompression.com

A La Cart, Inc.
by Unified Brands
Designer and manufacturer of cooking and meal delivery equipment primarily for the health care industry.
alacartinc.com

Barker Company, Limited
by Hillphoenix
Designer and manufacturer of specialty commercial refrigeration equipment for the food retail industry.
hillphoenix.com

Extech Portable Printers
by Datamax-O'Neil
Developer of portable printers for enterprise-wide applications centered on mobile information and remote transactions.
extech.com

Inpro/Seal Company
by Waukesha Bearings
Designer and manufacturer of bearing isolator technologies
inpro-seal.com