Dover Corp. to Purchase Tokheim Businesses
DOWNERS GROVE, Ill. — Dover Corp. has a binding offer on the table to acquire Tokheim Group SAS's dispenser and system businesses for approximately $465 million.
The Tokheim businesses will become part of OPW, a business unit within Dover's Fluids segment. Tokheim's sales and service divisions are not a part of this transaction and will become a stand-alone company remaining with the current owners of Tokheim.
The transaction is expected to close early in 2016.
Headquartered in Paris, Tokheim is a manufacturer of fuel dispensers, retail automation systems and payment systems. The businesses have manufacturing operations in Europe, China, India, and Brazil.
"We are excited about the acquisition of Tokheim's dispenser and systems businesses," said Robert A. Livingston, president and CEO of Dover. "The acquired technology fits perfectly with OPW's strong suite of products and systems, and Tokheim's strong presence in Europe, Africa and Asia complements OPW's global presence. Together, the combined business will offer unparalleled solutions for the growing retail fueling market."
Annual revenue for the Tokheim businesses in 2015 is estimated to be approximately $310 million this year.
Assuming an early 2016 close, Dover expects the transaction to be about 7 cents per share accretive to continuing earnings per share in 2016. Excluding normal transaction-related costs and purchase accounting amortization, Dover expects the transaction to be approximately 15 cents per share accretive to continuing earnings per share in 2016 on an operating basis.
In 2017, the transaction is anticipated to be about 13 cents per share accretive to continuing earnings per share. Excluding purchase accounting amortization, Dover expects the transaction to be approximately 21 cents accretive to continuing earnings per share on an operating basis in 2017. The transaction is expected to be principally funded with existing international cash balances.
Downers Grove-based Dover is a diversified global manufacturer with annual revenues in excess of $7 billion. Its four major operating segments are Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment.
OPW designs and manufactures retail service station equipment, compressed natural gas, and liquefied petroleum gas nozzles and accessories, electronic tank gauge systems, fleet fuel control systems, car wash systems, loading arms, valves and dry-break couplings, tank truck equipment, and rail car valves.