Dover (DOV) Inks $680M Contract to Sell DESTACO Business
Dover Corporation DOV announced that it signed a deal with the industrial and automotive supplier, Stabilus SE, to sell its De-Sta-Co (“DESTACO”) business for $680 million in enterprise value. This move will help Dover focus its efforts and capital deployment on growing its core platforms.
The deal is expected to close in the first half of 2024, subject to regulatory closing conditions.
Dover acquired DESTACO in 1962. It creates, manufactures and sells workholding and automation components for industrial automation. The business will gain from Stabilus' focus on industrial automation, as well as a robust go-to-market channel in industrial and automotive applications.
In 2022, DESTACO generated revenues of $213 million and is part of Dover's Engineered Products segment. The Engineered Products segment’s revenues were down 7.9% year over year to $474 million in the second quarter of 2023. The segment’s adjusted EBITDA fell 9.1% year over year to $80 million.
Dover reported second-quarter 2023 adjusted earnings per share from continuing operations of $2.05, missing the Zacks Consensus Estimate of $2.21. The bottom line decreased 4% year over year.
Total revenues in the second quarter fell 2.7% year over year to $2,100 million. The top line missed the Zacks Consensus Estimate of $2,176 million.
Price Performance
Shares of DOV have gained 18.6% in the past year compared with the industry’s rise of 22.7%.
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Zacks Rank & Other Stocks to Consider
Dover currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are Astec Industries, Inc. ASTE, Caterpillar Inc. CAT and Albany International AIN. ASTE sports a Zacks Rank #1 (Strong Buy), and CAT and AIN have a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Astec has an average trailing four-quarter earnings surprise of 20%. The Zacks Consensus Estimate for ASTE’s 2023 earnings is pegged at $2.81 per share. The consensus estimate for 2023 earnings has moved 4% north in the past 60 days. ASTE’s shares gained 22.8% in the last year.
Caterpillar has an average trailing four-quarter earnings surprise of 18.5%. The Zacks Consensus Estimate for CAT’s 2023 earnings is pegged at $19.81 per share. The consensus estimate for 2023 earnings has moved north by 11.4% in the past 60 days. Its shares gained 51.6% in the last year.
The Zacks Consensus Estimate for Albany International’s 2023 earnings per share is pegged at $3.62. The consensus estimate for 2023 earnings has moved 1% north in the past 60 days. It has a trailing four-quarter average earnings surprise of 12.5%. Shares of AIN rallied 3% in the last year.
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