DOWNERS GROVE, Ill. – Dover, a diversified global manufacturer, has acquired Marshall Excelsior Company (MEC) for $395 million in cash, the company announced today. MEC, a supplier of engineered flow control components based in Marshall, Michigan, will integrate into Dover's OPW Global unit, part of the Clean Energy & Fueling segment.
MEC, with a 48-year history, specializes in products for the transportation, storage, and use of liquified petroleum gas and other industrial gases. In 2023, MEC reported approximately $120 million in revenue, underlining its position in the market.
This acquisition is expected to complement OPW's existing offerings, particularly in the liquefied petroleum gas and cryogenic markets, and will provide new access to transport vehicle remote monitoring and severe service valve technologies.
OPW President Kevin Long expressed enthusiasm about the acquisition, highlighting the expanded range of solutions and potential for future growth and synergies. Dover's CEO, Richard J. Tobin, echoed this sentiment, noting the strategic fit of MEC within Dover's portfolio and its alignment with the company's focus on clean energy applications.
Tobin emphasized MEC's recurring revenue from mission-critical components, differentiated product attributes, and diverse blue-chip customer base as key factors in the acquisition decision.
Dover, with a workforce of around 25,000 employees, operates across five segments and generated over $8 billion in annual revenue. The company is known for its entrepreneurial approach and operational agility in the markets it serves.
The press release includes forward-looking statements and acknowledges risks and uncertainties that could impact future results, advising reference to the company's filings with the Securities and Exchange Commission for more details. This acquisition is part of Dover's strategic evolution and is anticipated to enhance its technological capabilities and market position in the cryogenic and industrial gas sectors.
The financial details of the transaction were not disclosed beyond the purchase price. This news is based on a press release statement from Dover.
In other recent news, Terex (NYSE:TEX) Corporation announced the acquisition of Environmental Solutions Group (ESG) from Dover Corporation (NYSE:DOV) in a $2 billion deal. The transaction, expected to close later this year, will enhance Terex's position in the waste and recycling sector.
ESG's contribution of $25 million in cost and revenue synergies by 2026, along with a 7%+ long-term organic revenue growth rate, is set to add significant margin accretion to Terex's EBITDA.
Simultaneously, Dover Corporation's first-quarter earnings exceeded analyst estimates, with an adjusted EPS of $1.95 and revenue reaching $2.09 billion. Mizuho Securities revised its outlook on Dover, raising its price target to $185 and increasing its earnings per share estimates for 2024 and 2025 to $9.10 and $9.75, respectively.
These recent developments highlight the strategic moves and financial performance of both Terex Corporation and Dover Corporation. It's worth noting that while these updates provide insight into recent happenings, they do not predict future outcomes for the companies.
InvestingPro Insights
As Dover (NYSE:DOV) diversifies its portfolio with the strategic acquisition of Marshall Excelsior Company, it's worth noting that the company has demonstrated a strong track record of financial stability and shareholder returns.
With a market capitalization of $24.86 billion, Dover is a significant player in the manufacturing sector. The company's long history of dividend reliability is underscored by an InvestingPro Tip that highlights Dover's achievement of raising its dividend for 53 consecutive years, illustrating a commitment to returning value to shareholders.
When it comes to Dover's stock performance, the company exhibits low price volatility, which could be an attractive feature for investors seeking stability in their investments. Additionally, Dover's P/E ratio stands at 17.28, suggesting a potentially favorable valuation when paired with its near-term earnings growth prospects. The company's PEG ratio, which stands at 0.44, also indicates that the stock may be undervalized given its earnings growth rate, making it a point of interest for value investors.
InvestingPro's comprehensive analysis provides further insights, including additional InvestingPro Tips that can guide investors in their decision-making process. For those interested in deeper analysis, Dover has 5 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/DOV. To take advantage of the full suite of features and tips, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
With the acquisition of MEC, Dover continues to enhance its product offerings and market position. The company's solid financial metrics and strategic moves, paired with the insights from InvestingPro, provide a comprehensive picture for investors monitoring Dover's growth trajectory.
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