Wayne Fueling Systems

Dover  Corp. (NYSE: DOV) is acquiring Wayne Fueling Systems Ltd., a provider of equipment and payment systems for gas stations from Riverstone Holdings LLC for $780 million.

Dover, based in Downers Grove, Illinois, is a diversified manufacturer in energy, engineered systems, fluids, and refrigeration and food equipment segments, with nearly $7 billion annual revenues and 26,000 employees. Wayne, based in Austin, Texas, sells fuel dispensing equipment, payment solutions and other services and equipment to retail and commercial fuel stations under the Helix brand.

Wayne's payment systems will help position Dover to capitalize on the conversion of U.S. gas stations to Europay, MasterCard Inc. (NYSE: MA)and Visa Inc. (NYSE; V)--also known as EMV--chip cards technology, says Robert Livingston, Dover’s CEO. Combined with Wayne’s business, Dover’s annual revenues from the retail fueling business, which includes its OPW and Tokheim units, will be $1.4 billion after the acquisition.

The transaction is expected to close in the second half of 2016, and to be funded with a combination of cash on hand and incremental debt. Annual revenue for Wayne in 2016 is estimated to be about $550 million. The deal price is about 10 times 2016 expected Ebitda, not including estimated annual synergies of $30 million.

Lazard was Dover's financial adviser on the deal, with Debevoise & Plimpton LLP is serving as legal adviser. For Wayne Fueling, Credit Suisse was financial adviser and Latham & Watkins was legal counsel.

Dover has been active in M&A recently, mostly as a seller. In May, its OPW unit acquired Fairbanks Environmental Ltd. of Skelmersdale, Lancashire, United Kingdom, a fuel management services business. In January, Dover announced that the acquisition of Tokheim Group, a fuel dispenser and payment solutions business, had been completed. In February, Dover sold Texas Hydraulics, which makes hydraulics cylinders for construction and industrial equipment, to Wynnchurch Capital. In 2015, Dover sold Hill Phoenix walk-in freezer parts maker to a company formed by D Cubed Group LLC, a private equity firm. Also in 2015, Dover sold Sargent Aerospace & Defense airplane parts maker to RBC Bearings Inc. (Nasdaq: ROLL).

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