Dover to Acquire Belanger
DOWNERS GROVE, Ill., Jan. 16, 2019 - Dover (NYSE: DOV) announced today that it has entered into an agreement to acquire the Belanger, Inc. business (“Belanger”), a leading full-line car wash equipment manufacturer. Following the close of the transaction, Belanger will become part of the OPW business unit, a global leader in fluid handling solutions, in Dover’s Fluids segment.
Headquartered in Northville, Michigan, and employing more than 150 people in the U.S., Belanger has served the car wash industry for nearly 50 years. Belanger, known for its strong engineering, reliability and innovative solutions, generated approximately $55 million in sales in 2018.
The addition of Belanger strengthens OPW’s position as one of the largest car wash equipment and systems suppliers with strong brands in both conveyor tunnel and in-bay automatic segments, as well as large vehicle wash solutions. Dover expects the acquisition to be accretive to margins and Adjusted EPS in Year 1 and to achieve double-digit return on capital in three years, consistent with Dover’s M&A criteria. The transaction price implies a multiple of 2018 EBITDA below 10x, prior to synergies but after the benefit of asset value step-up.
The demand for professional vehicle wash systems is growing due to a secular shift from manual washing to automated high-throughput professional systems. Robust long-term expansion in consumer demand for car wash services is supported by the convenience of professional washes, as well as increased adoption of loyalty programs by car wash operators.
“With the increasing popularity of commercial car washes, the vehicle wash solutions market is an attractive space where we intend to grow OPW,” said Richard J. Tobin, Dover’s President and Chief Executive Officer. “We look forward to welcoming the talented team from Belanger. When combined with our PDQ business, one of our OPW brands, we will be able to offer customers a full breadth of products in this attractive market. This transaction reflects Dover’s commitment to deploying capital strategically in close-to-core markets that offer potential for sustainable, profitable growth, and where our team can create value for shareholders.”
Terms of the transaction were not disclosed. The transaction is subject to satisfaction of customary closing conditions, including applicable regulatory approvals, and is expected to close in early 2019.
Dover is a diversified global manufacturer with annual revenues of approximately $7 billion. We deliver innovative equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services through three operating segments: Engineered Systems, Fluids, and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 60 years, our team of over 24,000 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.
For 125 years, OPW has led the way in designing and manufacturing world-class retail fueling and fluid handling solutions for the safe and efficient handling and distribution of fuels and critical fluids. OPW makes above ground and below ground products for both conventional, vapor recovery and clean energy applications in the retail and commercial markets. Additionally, OPW supplies loading arms, valves and dry-break couplings, tank truck equipment, rail car valves and equipment, and car wash systems. OPW has manufacturing operations in North America, Europe, Latin America and Asia Pacific, with sales offices around the world. OPW is part of Dover Corporation. To learn more about OPW’s 125 years of providing industry-leading solutions, visit our website at www.opwglobal.com.
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