Dover (NYSE: DOV) announced that it has acquired Accelerated Companies LLC ("Accelerated"), a leading supplier of artificial lift and fluid handling solutions to oil and gas production markets, for a purchase price of $430 million, subject to a customary adjustment for working capital. Headquartered in The Woodlands, Texas, Accelerated's core offerings include electric submersible pumps ("ESP"), hydraulic jet pump systems, gas lift systems, surface pumping and modular process systems for filtration, separation, heating and other fluid handling operations. Accelerated will become part of Dover Artificial Lift, a business unit within Dover's Energy segment.
Accelerated's innovative offerings in ESP and jet pump technologies complement Dover Artificial Lift's well-established position in systems, components and automation for rod lift, gas lift, plunger lift, progressing cavity pump applications and surface production. With this acquisition, Dover establishes a leading position in the fast-growing US shale well development market and is positioned for future growth in domestic and international markets.
"We are excited about the acquisition of Accelerated," said Robert A. Livingston, President & Chief Executive Officer of Dover. "The technology Accelerated brings to our portfolio, combined with our existing rod lift products, allows us to offer our customers the right artificial lift solutions for the complete life of their wells. Accelerated's strong double-digit growth over the past few years has been driven by the company's culture of innovation and customer engagement. Together, Dover Artificial Lift and Accelerated are very well positioned to capitalize on strong production market dynamics."
Soma Somasundaram, President & CEO of Dover's Energy segment, said, "The acquisition of Accelerated will allow us to benefit from the emerging North American trend of installing ESP systems early in the well completion cycle of high flow unconventional oil wells. With Accelerated, Dover will not only participate in the fastest growing segment of the artificial lift market, but we will also establish an earlier touch point with our customer. Overall, the products, service presence and talent mix Accelerated brings will help us better serve our customers."
Accelerated's 2014 revenue is estimated to be approximately $225 million. Dover expects this acquisition to be approximately $0.03 dilutive to fourth quarter 2014 continuing earnings per share due to normal transaction-related costs, including purchase accounting amortization. In 2015, Accelerated is expected to be $0.05 to $0.06 accretive to continuing earnings per share.