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Dover (DOV) Acquires All-Flo, Expands in Specialty Pump Market

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Dover Corporation (DOV - Free Report) has completed the acquisition of the All-Flo Pump Company, Limited ("All-Flo"). Headquartered in Mentor, Ohio, All-Flo is now part of the Pump Solutions Group (PSG) business within Dover’s Fluids segment.

Notably, All-Flo is a manufacturer of specialty air-operated double-diaphragm ("AODD"), which is used in a wide range of industrial applications to transfer abrasive, viscous and hazardous fluids, sludges and slurries. The acquisition boosts PSG’s leading AODD pump portfolio and expands its geographic presence in the specialty pump market.

Dover’s PSG unit is a global leader in the manufacture of pumps, systems and related technologies. The acquisition strengthens PSG’s leading market position, as well as is in sync with Dover’s strategic approach of deploying capital in close-to-core markets with sustainable growth by creating value for shareholders.
 
All-Flo generated around $12 million revenues in 2018 and will likely be accretive to Dover’s margins in the Fluids segment. Moreover, the buyout is anticipated to generate double-digit cash Return on Invested Capital (ROIC) within three years.

On Apr 3, Dover’s PSG unit has completed the sale of Finder Pompe S.r.l ("Finder") to Gruppo Aturia S.p.A. The divesture is in line with Dover’s strategy to reduce exposure in highly-cyclical upstream energy markets. It also enabled its PSG business to focus on hygienic pump technologies and positive displacement.

Coming to the price performance, Dover’s shares have appreciated around 26.4% over the past year compared to the industry’s growth of 10.6%.



In first-quarter 2019, Dover’s earnings and revenues improved year over year. The Fluids segment revenues were up 12% year over year to $703 million. Excluding the loss on sale of assets related to Finder, the segment’s income surged 47.7% year over year.

Dover expects 2019 earnings per share of $5.65-$5.85, backed by improved performances in the Engineered Systems and Fluids segments, and benefits from its cost-containment actions. Dover’s 2019 results will likely improve on robust bookings growth, solid order backlog, margin improvement and rightsizing programs.
 
Dover has a long tradition of making successful acquisitions in diverse end markets. In January 2018, it acquired Ettlinger Group, in a bid to boost its presence in the plastics and polymers processing equipment industry. Ettlinger’s high-performance filtration systems will fortify Dover’s Maag business’ position in the plastics-processing equipment industry. Further, the buyout of Rosario Handel B.V. ("Rosario"), a manufacturer of decorator and base coating machinery used in the production of beverage, food and aerosol cans will help serve the Food Equipment end market within the Refrigeration & Food Equipment segment. This January, Dover completed the acquisition of Belanger, which will likely be accretive to margins and adjusted earnings in 2019.

Dover Corporation Price, Consensus and EPS Surprise

Zacks Rank & Stocks to Consider

Dover currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Industrial Products sector are DMC Global Inc. (BOOM - Free Report) , Lawson Products, Inc. and Roper Technologies, Inc. (ROP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have soared 60.3%, in the past year.

Lawson Products has a stellar expected earnings growth rate of 102.5% for the current year. The stock has appreciated 36.9% in a year’s time.

Roper Technologies has a projected earnings growth rate of 7.79% for 2019. The company’s shares have gained 28.3%, over the past year.

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