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Dover Acquires Accelerated Companies LLC
DOVER ACQUIRES ACCELERATED COMPANIES LLC
Acquisition expands Dover Artificial Lift's product breadth and capabilities
Downers Grove, IL, October 2, 2014 - Dover (NYSE: DOV) today announced that it has acquired Accelerated Companies LLC ("Accelerated"), a leading supplier of artificial lift and fluid handling solutions to oil and gas production markets, for a purchase price of $430 million, subject to a customary adjustment for working capital. Headquartered in The Woodlands, Texas, Accelerated's core offerings include electric submersible pumps ("ESP"), hydraulic jet pump systems, gas lift systems, surface pumping and modular process systems for filtration, separation, heating and other fluid handling operations. Accelerated will become part of Dover Artificial Lift, a business unit within Dover's Energy segment.
Accelerated's innovative offerings in ESP and jet pump technologies complement Dover Artificial Lift's well-established position in systems, components and automation for rod lift, gas lift, plunger lift, progressing cavity pump applications and surface production. With this acquisition, Dover establishes a leading position in the fast-growing US shale well development market and is positioned for future growth in domestic and international markets.
"We are excited about the acquisition of Accelerated," said Robert A. Livingston, President & Chief Executive Officer of Dover. "The technology Accelerated brings to our portfolio, combined with our existing rod lift products, allows us to offer our customers the right artificial lift solutions for the complete life of their wells. Accelerated's strong double-digit growth over the past few years has been driven by the company's culture of innovation and customer engagement. Together, Dover Artificial Lift and Accelerated are very well positioned to capitalize on strong production market dynamics."
Soma Somasundaram, President & CEO of Dover's Energy segment, said, "The acquisition of Accelerated will allow us to benefit from the emerging North American trend of installing ESP systems early in the well completion cycle of high flow unconventional oil wells. With Accelerated, Dover will not only participate in the fastest growing segment of the artificial lift market, but we will also establish an earlier touch point with our customer. Overall, the products, service presence and talent mix Accelerated brings will help us better serve our customers."
Accelerated's 2014 revenue is estimated to be approximately $225 million. Dover expects this acquisition to be approximately $0.03 dilutive to fourth quarter 2014 continuing earnings per share due to normal transaction-related costs, including purchase accounting amortization. In 2015, Accelerated is expected to be $0.05 to $0.06 accretive to continuing earnings per share.
About Dover:
Dover is a diversified global manufacturer with annual revenues of $8 billion. We deliver innovative equipment and components, specialty systems and support services through four major operating segments: Energy, 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 nearly 60 years, our team of 28,000 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 www.dovercorporation.com.
About Dover Artificial Lift:
Dover Artificial Lift is a leading provider of artificial lift and surface production solutions to the oil and gas industry. Dover Artificial Lift delivers the latest technologies, innovations and solutions in rod lift, plunger-lift, progressing cavity pump systems, well site controls and analytic tools to a wide range of oil and gas producers around the world. Headquartered in The Woodlands, Texas, Dover Artificial Lift is part of the Energy segment within Dover. Visit the website for additional information www.doverals.com.
About Accelerated Companies LLC:
Accelerated is an integrated product and service supplier for the oil and gas industry worldwide. Accelerated provides comprehensive hydraulic lift solutions, a broad range of pump systems, an array of critical process equipment and systems, and a number of professional design, engineering and support services to meet industry needs. Additional information is available at www.acceleratedproduction.com.
Forward Looking Statements:
Dover makes information available to the public, orally and in writing, which may use words like "anticipates," "expects," "believes," "indicates," "suggests," "will," "plans" and "should," which are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. This press release contains forward-looking statements concerning future events and the performance of Dover and Accelerated that involve inherent risks and uncertainties that could cause actual results to differ materially from current expectations. Dover refers you to the documents that it files from time to time with the Securities and Exchange Commission, such as its reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of risks and uncertainties that could cause its actual results to differ materially from its current expectations and from the forward-looking statements contained in this press release. Dover undertakes no obligation to update any forward-looking statement.
Investor Contact:
Paul Goldberg
Vice President - Investor Relations
(212) 922-1640
peg@dovercorp.com
Media Contact:
Adrian Sakowicz
Director - Communications
(630) 743-5039
asakowicz@dovercorp.com