Dover Corporation (DOV) has completed the acquisition of Italy-based MS Printing Solutions S.r.l., a leading designer, manufacturer and distributor of innovative digital ink jet printing systems and associated consumables, catering to the textile and specialty material markets.
MS Printing Solutions will now become part of Dover's Printing and Identification (:DPI) segment. The acquisition will help expand the segment’s served markets beyond fast moving consumer goods and industrial markets into the textile market.
Digital printing technology is currently in demand in the textile market with immense growth potential. The acquisition will also provide synergistic opportunities and allow the segment to share and leverage technology across its operations.
Dover reported fourth-quarter 2013 adjusted earnings from continuing operations of $1.28 per share, up 17% year over year. Organic growth across all segments, strength in refrigeration and food equipment, fast moving consumer goods, fluids, drilling and downstream energy markets helped the year-over-year increase. Total revenue rose 10% year on year to $2.21 billion in the quarter, which includes organic growth of 5% and a 5% contribution from acquisitions.
DPI segment revenues were $276 million in the quarter compared with $254 million in the prior-year quarter. The segment reported an operating income of $44 million, increasing 8% from $40.6 million a year ago.
With expected revenues of $70 million in 2014, the acquisition of MS Printing Solutions will boost revenues in the DPI segment. Dover will continue to benefit from its acquisitions and growth in bookings and orders. In addition, focus on oil and gas, plastics and petrochemicals and hygiene markets will fuel Dover’s growth in the near term. However, volatile raw material costs and rising macroeconomic uncertainty will remain headwinds for it.
Dover currently holds a short-term Zacks Rank #5 (Strong Sell). Some better-performing stocks in the sector include Middleby Corp. (MIDD), Xylem Inc. (XYL) and Barnes Group Inc. (B). While Middleby and Xylem carry a Zacks Rank #1 (Strong Buy), Barnes Group carries a Zacks Rank #2 (Buy).Read the Full Research Report on DOV
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