8-KOther Events

DOVER Corp 8-K Report, Corporate Update (Dec 16, 2021)

Filed December 16, 2021For Securities:DOV

Summary

Dover Corporation (DOV) has announced the completion of its acquisition of Acme Cryogenics, Inc. for $295 million in cash and entered into a definitive agreement to acquire Engineered Controls International, LLC (RegO) for $631 million in cash. Both companies will be integrated into Dover's OPW Global operating unit within the Fueling Solutions segment. These strategic acquisitions are expected to bolster Dover's offerings in its Fueling Solutions segment. The company anticipates that the RegO transaction will close in the fourth quarter of 2021, subject to customary closing conditions and regulatory approvals. Funding for these acquisitions is being managed through a combination of existing cash reserves, proceeds from recent divestitures, and commercial paper. Investors should note the forward-looking nature of this announcement, with potential risks including the successful integration of RegO and Acme, realization of synergies, and broader economic and supply chain factors.

Key Highlights

  • 1Dover Corporation completed the acquisition of Acme Cryogenics for $295 million cash.
  • 2Dover Corporation entered into a definitive agreement to acquire Engineered Controls International (RegO) for $631 million cash.
  • 3Both Acme and RegO will be integrated into the OPW Global operating unit within Dover's Fueling Solutions segment.
  • 4The RegO acquisition is expected to close in Q4 2021, subject to closing conditions and regulatory approvals.
  • 5The acquisitions are funded by cash on hand, proceeds from recent divestitures, and commercial paper.
  • 6The company acknowledges potential risks related to acquisition integration, synergy realization, and broader economic conditions.

Frequently Asked Questions

Dover Corporation has acquired Acme Cryogenics for $295 million and has agreed to acquire Engineered Controls International (RegO) for $631 million, totaling $926 million in cash consideration for both transactions, subject to customary purchase price adjustments for RegO.

Both Acme Cryogenics and Engineered Controls International (RegO) will become part of the OPW Global operating unit, which is within Dover's Fueling Solutions segment. This indicates a strategic focus on strengthening and expanding this segment.

The company has identified several risks, including the ability to successfully close the RegO transaction, realize expected synergies from both acquisitions and other recent deals, and the impact of broader economic factors such as COVID-19, supply chain constraints, labor shortages, and inflation.

The acquisitions are being funded through a combination of Dover's existing cash on hand, proceeds generated from recent divestitures, and the issuance of commercial paper.