Dover's Unit Acquires SPIRIT - Analyst Blog

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Norris Production Solutions (NPS), a unit of Dover Corporation's ( DOV ) Energy segment, has acquired SPIRIT Global Energy Solutions (SPIRIT) to improve its rod pumping and artificial lift technology. Financial terms of the transaction were not disclosed.

The rod pumping technology is the artificial lift method employed by oil producers. Pump-off control helps to diagnose inefficient run times and down times, stuck pumps, parted rods, worn pumps and many other problems.

Headquartered in Texas, SPIRIT delivers innovative artificial lift tools and technology to oil and gas producers. The company is also involved in the development of optimization solutions for rod-pumped wells alongwith exclusive training regarding rod pumping and pump-off control technology.

NPS on the other hand is a manufacturer and provider of integrated products and solutions across the artificial lift spectrum for oil and gas production. The SPIRIT acquisition will help NPS to meet the growing demand of artificial lift, facilitating its leadership position in the marketplace. In addition, the technology will help in increasing efficient pumping, energy savings as well as environmental protection.

Dover reported revenues of $573 million from its Energy Segment in second-quarter 2013, a 6% year-over-year rise. The segment's operating income, however, decreased to $132.9 million from $133.9 million in the prior-year quarter.

For fiscal 2013, Dover expects revenue growth in the range of 7%-9% on the back of organic revenue growth of 3%-5%, while acquisitions are expected to add 4%. Earnings per share from continuing operations are expected at $5.56 to $5.71.

Dover will continue to benefit from an active acquisition pipeline, bookings and orders growth. However, a volatile semiconductor market and a weak industrial market might weigh on the Printing and Identification segment and a lower North American rig count will constrain growth in the Energy segment.

Dover currently retains a Zacks Rank #2 (Buy). Other stocks in the same industry with favorable Zacks rank include Gorman-Rupp Co. ( GRC ) and Graham Corp. ( GHM ) with a Zacks Rank #1 (Strong Buy), and DXP Enterprises, Inc. ( DXPE ) with a Zacks Rank #2 (Buy).



DOVER CORP (DOV): Free Stock Analysis Report

DXP ENTERPRISES (DXPE): Free Stock Analysis Report

GRAHAM CORP (GHM): Free Stock Analysis Report

GORMAN RUPP CO (GRC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: DOV , DXPE , GHM , GRC

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