) has acquired Anthony International - a Sylma, California-based
manufacturer of glass doors for commercial refrigerators - from
private equity firm Avista Capital Partners for $602.5
Anthony International has global operations with locations
across U.S., Italy, China and South Africa. The company is
expected to generate revenues of around $310 million in 2012. The
acquisition will have a dilutive effect of 2 cents on Dover's
earnings in 2012 owing to integration and acquisition related
costs but will be modestly accretive to earnings in 2013.
The company will be included in Dover's Refrigeration &
Industrial business, which is a part of the Engineered Systems
segment. The Refrigeration & Industrial group manufactures
products and systems serving the refrigeration/food, waste and
recycling and other niche industrial markets. The group
manufactures refrigeration systems, refrigeration display cases,
walk-in coolers and freezers, commercial foodservice equipment,
and other products for refrigeration of meat, poultry and other
The majority of these manufactured products are used by the
supermarket industry, retail and convenience stores, the
commercial/industrial refrigeration industry, institutional and
commercial foodservice and food production markets, and beverage
can-making industries. The platform's refrigeration/food related
manufacturing facilities and distributing operations are
principally in North America, Europe and Asia.
The acquisition will expand Dover's product portfolio and
enhance its service offerings. The company is committed to its
target of achieving annual organic sales growth of 7% to 9% in
the next three years, aided by acquisition growth of 3% to 5%.
The company intends to focus on its five key growth spaces
- communication components, energy, product ID, refrigeration and
food equipment, and fluid solutions.
Anthony International commands leading positions in
refrigeration and freezer doors, re-skinning services, and
specialty & curved glass. This provides food retailers ample
scope to improve energy efficiency and enhance the consumer
shopping experience. Furthermore, Anthony's global
operations will provide a worldwide customer base and open new
markets for Dover's existing refrigeration business.
Dover continues to pursue strategic acquisitions in a bid to
improve its product offering and complement its organic growth
strategy. Its acquisition pipeline is ever active. It aims to
either acquire add-on businesses that enhance its existing
businesses or pursue larger, stand-alone businesses that will
either complement its existing businesses or allow it to pursue
innovative technologies within its key growth spaces.
Over the 2009 - 2011 timeframe, the company has expended over
$1.7 billion to purchase 21 businesses. This includes the
acquisition of Sound Solutions, its largest ever, for
approximately $800 million in July 2011. The buy catapulted
Dover's Communication Technologies segment to the number one spot
in audio components worldwide.
Dover recently reported its third-quarter 2012 earnings of
$1.30 per share, beating the Zacks Consensus Estimate of $1.27.
Results improved 10.2% from the prior-year quarter's earnings of
$1.18 per share.
Total revenue was $2.209 billion, improving 3% year over year,
but missing the Zacks Consensus Estimate of $2.249 billion. The
revenue increase included organic growth of 1% and increase from
acquisitions by 4%, partially offset by negative impacts of 2%
from foreign currency.
For 2012, Dover trimmed its guidance for both revenues and
EPS. The company now expects revenue growth of 7%, down from the
prior range of 8%-10%. Organic revenue growth will contribute 3%
while acquisitions will add 4% to revenue growth. It expects
earnings to lie in the band of $4.55-$4.65, down from the
previous range of $4.70-$4.85.
However, Dover is facing challenges in the Handset and
Electronic markets. Moreover, the uncertainty in the global
economy adds to its worries.
New York-based Dover is an industrial conglomerate producing a
wide range of specialized industrial products and manufacturing
equipment. Dover competes with companies like
Cooper Industries plc
Weatherford International Ltd.
). Dover retains a short-term Zacks #3 Rank (Hold).
COOPER INDS PLC (CBE): Free Stock Analysis
DOVER CORP (DOV): Free Stock Analysis Report
INGERSOLL RAND (IR): Free Stock Analysis
WEATHERFORD INT (WFT): Free Stock Analysis
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