Dover announced that it has executed an agreement with Tokheim Group SAS, pursuant to which Dover has made a binding offer to acquire Tokheim’s dispenser and system businesses for a purchase price of EUR 425 million (approximately USD $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 subject to completion of discussions with certain of Tokheim’s works councils, certain customary regulatory filings and other customary conditions, and is expected to close early in 2016.
Headquartered in Paris, France, Tokheim is a leading manufacturer of fuel dispensers, retail automation systems, and payment systems. Tokheim products have been associated with exceptional quality for more than a century. The Tokheim businesses have manufacturing operations in Europe, China, India, and Brazil. The addition of the Tokheim Businesses’ innovative product offerings will further enhance OPW’s strong position in retail fueling equipment. Through this acquisition, Dover will establish OPW as a leading retail fueling systems provider, featuring a full “Station-in-a-Box” offering with unrivaled product breadth.
“We are excited about the acquisition of Tokheim’s dispenser and systems businesses,” said Robert A Livingston, president and chief executive officer 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 EUR 280 million (approximately USD $310 million). Assuming an early 2016 close, Dover expects the transaction to be about $0.07 accretive to continuing earnings per share in 2016. Excluding normal transaction-related costs and purchase accounting amortization, Dover expects the transaction to be approximately $0.15 accretive to continuing earnings per share in 2016 on an operating basis.
In 2017, the transaction is anticipated to be about $0.13 accretive to continuing earnings per share. Excluding purchase accounting amortization, Dover expects the transaction to be approximately $0.21 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.