Dover announced that it has completed the acquisition of Acme Cryogenics, Inc. for $295 million in cash, and that it has entered into a definitive agreement to acquire Engineered Controls International, LLC (RegO) for $631 million in cash, subject to customary purchase price adjustments. Additionally, the RegO acquisition includes tax step-up benefits with a net present value of approximately $35 million. Both businesses will become part of the OPW Global operating unit within Dover’s Fueling Solutions segment.
Acme, established in 1969 and headquartered in Allentown, PA, and RegO, established in 1918 and headquartered in Elon, NC, are well-established and growing providers of highly-engineered, mission-critical components and services that facilitate the production, storage, and distribution of cryogenic gases used in a diverse set of applications. The businesses supply engineered components such as valves, regulators, vacuum jacketed piping, fittings, safety devices, liquefied natural gas fueling components, and other specialty flow control devices to blue chip customers from a variety of end-markets exposed to high secular growth trends.
Acme’s and RegO’s products are highly complementary to Dover’s existing clean energy solutions, and will enhance our offerings for the hydrogen (H2), liquefied natural gas (LNG), and liquefied petroleum gas (LPG) applications, as well as Dover’s participation in the attractive cryogenic industrial gases end market. Upon closing of both acquisitions, the expanded clean energy applications within Fueling Solutions are expected to generate over $300 million in annual sales, including approximately $100 million of sales from cryogenic gas applications.
Dover’s President and Chief Executive Officer, Richard J. Tobin, said, “The acquisitions of Acme and RegO are the next step in our strategy to enhance the Fueling Solutions portfolio with growing participation in clean fuels and other attractive adjacencies. On the back of our recent acquisition of LIQAL and our partnerships in electric vehicle charging, these two acquisitions will scale up our position as a leader in the growing clean and alternative fuel applications as investments in this space are rapidly accelerating. We are also excited to establish a position in an attractive cryogenic gas adjacency, which offers robust organic and inorganic growth prospects. The business models of Acme and RegO are a great fit for Dover, as their offerings mainly include components that are critical to performance, safety and compliance of larger systems, their go-to-market models are based on a mix of long-tenured loyal OEM, distribution and end-customer relationships, and their long-term success in the marketplace is driven by innovation, engineering and manufacturing excellence. We are excited about the strong growth prospects of these strategic additions to our portfolio and our ability to drive significant value creation by leveraging Dover’s operating scale and enterprise capabilities.”