Dover To Acquire Belanger
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
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
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
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