) announced closure of the previously planned sale of its DEK
Printing Machines unit (DEK) to Hong Kong-listed ASM Pacific
Dover declared that it has signed a definitive agreement to sell
the unit in December last year. The unit had been put on the
block for a year. Dover had announced its plan to divest Everett
Charles Technologies (including the Multitest business) and DEK,
which served the electronic assembly and test markets, at the time
of releasing its fourth quarter 2012 results. The businesses were
classified as discontinued operations since then.
Subsequently, in Sep 2013, Dover entered into an agreement to sell
its Multitest and Everett Charles Technologies (ECT) businesses to
LTX-Credence Corporation, now known as Xcerra Corporation for $93.5
DEK came under Dover's wing when it was acquired in 1983. DEK is a
global provider of advanced materials deposition technologies and
support solutions including printing equipment platforms, stencils,
precision screens and mass imaging processes used primarily in the
The DEK business previously was part of Dover's former Printing
& Identification segment. As per Dover's new segment structure,
organized around its key end markets to better focus on growth
strategies, the Printing & Identification platform comes under
the Engineered Systems segment. The segment is focused on design,
manufacture and service of critical equipment and components
serving the printing & identification, vehicle service, waste
handling and industrial end markets. The segment generated 34.5% of
Dover's total revenue in the first quarter of 2014.
This current sale along with the previously announced spin-off of
certain parts of the communication technologies businesses into a
standalone, publicly-traded company will simplify Dover's business
profile and enable it to focus on its key industrial growth spaces
- Energy, Fluids, Refrigeration & Food Equipment, and
Engineered Systems. Dover will continue to benefit from its active
acquisition pipeline in these spaces as well as solid booking and
orders growth. Dover's sound balance sheet coupled with solid
earnings growth should allow the company to continue its dividend
hike and share repurchases in the years ahead.
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:
Energy, Engineered Systems, Fluids and Refrigeration & Food
Dover currently holds a Zacks Rank #2 (Buy). Some other stocks
worth considering in the machinery-general industrial sector
Blount International Inc.
EnPro Industries, Inc.
). While Blount International and EnPro Industries hold a Zacks
Rank #1 (Strong Buy), Nordson carries the same rank as Dover.
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