Dover (DOV) Shares Up as OPW Completes Acquisition of Liquip

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Shares of Dover Corporation (DOV) gained nearly 1% and closed at $89.73 after OPW, a unit of its Fluids segment, completed the earlier announced acquisition of Liquip International.

Headquartered in Smithfield, NSW, Australia, Liquip is a leading Australian designer and manufacturer of bulk liquid handling and storage solutions in the petroleum, aviation, and chemical markets.

The acquisition of Liquip will enable OPW to form a superior product portfolio. The buyout will cater to the exclusive requirements of OPW’s chemical and industrial and tank truck customers.

Dover’s expansion has been mainly driven by acquisitions. Over the past three years Dover has spent over $2.7 billion to purchase 26 businesses which include 10 acquisitions for $323 million in fiscal 2013.

In early 2014, Dover’s Engineered Systems acquired Italy-based MS Printing Solutions S.r.l. Further, in Jul 2014, its Energy segment acquired The WellMark Company to meet the growing global demands of oil and gas customers. The Liquip acquisition is the first one in 2014 by Dover’s Fluids segment.

Dover expects to benefit from its strategy of acquiring value creating add-on businesses, which will assist in the expansion of its global presence. Moreover, Dover’s continuous focus on development and delivery of products and solutions to customers is expected drive growth.

At its second quarter conference call, Dover raised its full-year 2014 earnings guidance to a new range of $4.75–$4.85 per share. The company now expects organic revenue growth of 4%. Acquisitions are expected to contribute 3% to the growth, resulting in revenue growth of 6%–7% in fiscal 2014.

Dover currently carries a Zacks Rank #3 (Hold). Other stocks in the same industry with favorable Zacks ranks are Atlas Copco AB (ATLKY), DXP Enterprises, Inc. (DXPE) and IDEX Corp. (IEX). All these stocks carry a Zacks Rank #2 (Buy).

Illinois-based Dover is an industrial conglomerate producing a wide range of specialized industrial products and manufacturing equipment. It operates through four major operating segments: Communication Technologies, Energy, Engineered Systems and Printing & Identification.

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