DOVER ACQUIRES BELANGER

Expands OPW’s Access to Growing Carwash Equipment Market

Dover (NYSE: DOV) recently announced that it has completed a previously announced acquisition of the Belanger, Inc. business, which will become part of OPW, a business unit within Dover’s fluids segment.

Headquartered in Northville, Michigan, and employing more than 150 people in the U.S., Belanger has served the carwash industry for nearly 50 years. Belanger, known for its strong engineering, reliability and innovative solutions, generated approximately $55 million in sales in 2018.

The addition of Belanger strengthens OPW’s position as one of the largest carwash equipment and systems suppliers with strong brands in both conveyor tunnel and in-bay automatic segments, as well as large vehicle wash solutions. Dover expects the acquisition to be accretive to margins and adjusted EPS in year one and to achieve double-digit return on capital in three years, consistent with Dover’s M&A criteria. The transaction price implies a multiple of 2018 EBITDA below 10x, prior to synergies but after the benefit of asset value step-up.

The demand for professional vehicle wash systems is growing due to a secular shift from manual washing to automated high-throughput professional systems. Robust long-term expansion in consumer demand for carwash services is supported by the convenience of professional washes, as well as increased adoption of loyalty programs by carwash operators.

“With the increasing popularity of commercial carwashes, the vehicle wash solutions market is an attractive space where we intend to grow OPW,” said Richard J. Tobin, Dover’s president and chief executive officer. “We look forward to welcoming the talented team from Belanger. When combined with our PDQ business, one of our OPW brands, we will be able to offer customers a full breadth of products in this attractive market. This transaction reflects Dover’s commitment to deploying capital strategically in close-to-core markets that offer potential for sustainable, profitable growth, and where our team can create value for shareholders.”

Terms of the transaction were not disclosed. The transaction was subject to satisfaction of customary closing conditions, including applicable regulatory approvals.