Our acquisition strategy is focused on driving growth by investing capital in four strategic growth segments: Energy, Engineered Systems, Fluids and Refrigeration & Food Equipment. For more than 50 years, we have acquired promising manufacturing companies, fueling mutually beneficial growth and opportunities by leveraging our scale and resources.
“Our progressive focus fuels both organic growth and successful acquisitions, harnessing our scale to apply precise expertise to every industry we serve.”
— Bob Livingston,
President and CEO
Learn more as Stephen Sellhausen, our SVP of Corporate Development & Strategy, reflects on the 2013 financial year and shares his outlook for 2014
Our leadership history has shaped our operating style. We trace our roots back to a group of 1920s investors led by George Ohrstrom, Sr. Ohrstrom targeted 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. This hands-on, strategy-driven acquisition model is still fundamental to our business today. Ohrstrom preferred modestly sized, profitable enterprises run by first-class people who understood their businesses and customers, and could continue to be successful. This is the mindset at Dover today. In the century since Ohrstrom's ambitious
beginnings, our six CEOs have diligently worked to develop Dover into a company of tomorrow without forgetting the strategy and integrity of our past.
We are focused on building businesses around larger global segments, while looking for opportunities to work closely with customers and leverage expertise across Dover. We support the growth plans of our existing businesses and utilize our strong excess cash flow to make acquisitions that are the right fit strategically and culturally for our continued innovation and growth.
“What Dover's demonstrated over the years with its buy, hold, and develop business strategy is that it really has an active involvement. We want the business and the people in it to stay, survive, grow, and be part of the ongoing success.”
— Bill Johnson,
President and CEO, Dover Refrigeration & Food Equipment
“You're going to get access to capital, you're going to get access to talent, you're going to get access to, in some cases, a much grander opportunity for globalization."
— Dean Douglas,
Pump Solutions Group
LEADING BRANDS AND TECHNOLOGY
We acquire manufacturers of highly engineered, value-added industrial components or systems. We look for customer-inspired market leaders whose premier brands, proprietary technology and intellectual property make them indispensable partners to their industrial and commercial customers.
We prefer companies that are well-positioned in global growth markets and noncyclical industries that benefit from macro growth trends. We also seek businesses with attractive aftermarket and recurring revenue and service opportunities.
We proactively search for companies with strong financial performance that can be built upon for significant future growth. We seek companies with the ability to achieve operating profit margins above 15%.
We are also committed to buying businesses that have strong management teams. Our culture requires the operating management team to demonstrate ownership in product development and innovation, continuing to operate close to the customer. We carefully assess the skill, energy, ethics and compatibility of the top executives of each acquisition candidate before determining if a business will integrate well into our driven, growth-oriented organization.
Learn more about our approach in this discussion with Argyle Executive Form
We seek companies that can grow and prosper from our expertise, scale, tools and resources, such as global sourcing, regional infrastructure and talent development. In addition, it is important that prospective acquisitions share our drive, our entrepreneurial mindset and our deep commitment to integrity.
We seek acquisition candidates that would be a strategic addition to one of our growth segments and fill existing adjacencies, whether they are in technology, white spaces, product lines, changes of ownership or global geographic expansion.
We attract businesses that are run by entrepreneurial talent who take an ownership mindset and are driven to grow businesses for the future. We like working with ambitious teams who stay close to the customer. Whether an "add-on" or an independent "stand-alone" operating company, all acquisitions must share our commitment to truly understanding customer needs and constantly innovating for the customer.
Across segments, OpCos and industries, our leaders are linked by a deep-seated integrity. 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 independently, with the expectation of excellence and integrity. Our values are reflected in all that we do.
Together, we will make the most of strategic opportunities, synergies and resources to realize success and expand our growth segments. Together, we will redefine what is possible in Energy, Fluids, Refrigeration & Food Equipment and Engineered Systems.
We take a buy-hold-develop approach rather than have a portfolio mentality.
“I think what companies will find at Dover is a very down to earth, straight-shooting group of executives. We're very up-front in what we see as the potential fit of a business, how the management and employees would fit within the company. What we promise we deliver”
— Steve Sellhausen,
Senior Vice President, Corporate Development & Strategy, Dover
Stephen R. Sellhausen
Senior Vice President,
Corporate Development & Strategy
José Magalhães Fernandes
P: +91 (80) 4112 3421 x 600
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The leading provider of innovative and energy efficient equipment and systems serving the commercial refrigeration and food service industries.