Dover Completes PMI Sale to Focus on High Growth Markets

Dover CorporationDOV has completed the sale of its Performance Motorsports International ("PMI") unit to Race Winning Brands for $150 million. This includes Dover`s retention of a minority ownership interest in the ongoing business. The move is in sync with the company's strategy to focus on higher growth core markets.

Performance Motorsports was created from a vision of the Dover Corporation to define an umbrella company that contained the leaders in the Automotive/Powersports worlds. This umbrella company would allow the individual companies to share engineering and technological resources to further expand market share and thus provide a superior product for customers. Each of the companies are recognized brand leaders and primarily sell pistons, and other engine related components to the Motorsports and Powersports markets (high performance racing, motorcycles, all-terrain vehicles, snowmobiles, personal watercraft, and so on.).

Dover Corporation Price

Dover Corporation Price | Dover Corporation Quote

Dover intends to remain focused on expanding business in key markets that offer significant growth potential and also lead to organic and inorganic growth at all segments. Further, the company divests its businesses based on specific market conditions or for strategic considerations, which include an effort to reduce exposure to cyclical markets and focus on higher margin growth spaces.

In the past three years, the company has sold six businesses for aggregate consideration of $1.1 billion. During 2016, it completed the sale of Texas Hydraulics and Tipper Tie, within the Engineered Systems and Refrigeration & Food Equipment segments, respectively. During 2015, the company completed the sale of Datamax O'Neil and Sargent Aerospace. In Feb 2014, the company had divested of a significant portion of its technology business with the spin-off of Knowles Corporation.

In the last three months, Dover has outperformed the Zacks classified Machinery - General Industrial sub-industry with respect to price performance. The stock gained 12.8%, while the industry rose 7.1% over the same time frame.

Zacks Rank

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

Some better-ranked stocks in the machinery-general industrial industry include Altra Industrial Motion Corp. AIMC , Actuant Corporation ATU and Graco Inc. GGG . All three of these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Altra Industrial Motion has a positive average earnings surprise of 8.06% in the last four quarters. Actuant generated a positive average earnings surprise of 6.18% in the trailing four quarters. Graco has delivered an average positive earnings surprise of 2.21% in the last four quarters.

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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 Nasdaq, Inc.

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

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