Dover, a manufacturer of industrial products with annual revenue of over $8 billion, has announced its agreement to sell Destaco, its automation, workholding, and containment solutions company, to Stabilus. The enterprise value of the deal is set at $680.0 million.
The All-Cash Deal
Stabilus plans to acquire Destaco as part of Dover’s engineered products segment. The transaction, expected to close in the first half of 2024, will be an all-cash deal, according to Stabilus.
Dover’s Focus on Core Platforms
In a separate statement, Dover’s President and Chief Executive Richard J. Tobin expressed the company’s intention to concentrate their efforts and capital deployment on growing their core platforms. The sale of Destaco will enable Dover to pursue this strategy effectively.
Destaco’s Revenue and Operations
Destaco, which operates across 13 locations in the U.S., Europe, India, China, and Thailand, generated revenue of $213 million in 2022. With approximately 650 employees, the company is an important player in the automation and workholding industry.
Post-Merger Outlook
Stabilus anticipates significant synergy benefits from the merger. By 2028, it expects Destaco to achieve a compound annual revenue growth rate of around 9%, amounting to approximately $360 million. Additionally, the company aims to generate sales synergies of more than 50 million euros ($53.1 million) annually by fiscal 2026. Cost synergies are projected to exceed EUR10 million yearly.
