Dover Technologies Inc. (DTI), a subsidiary of Dover Corp., a diversified industrial manufacturer, has signed a definitive agreement to acquire Markem Corp., Keene, N.H., a manufacturer of product identification solutions. Terms of the transaction were not disclosed.
Markem, with annualized sales of about $290 million, will report to Dover Technologies and operate as an independent company in conjunction with DTI's Product Identification Group, which would then have annualized revenue over $800 million.
The results of the acquisition will have a negative impact on Dover's earnings in 2006 of approximately 3 cents per diluted share.
Ronald L. Hoffman, president and chief executive officer of Dover, commented: "We are excited to have the opportunity to acquire Markem, which expands our strategically important product identification platform. We believe that with Markem, we have a truly world class product identification platform which strengthens our technological leadership and offers us significant opportunities for further growth."
Dave Van Loan, president of Dover Technologies, said: "Markem is a clear leader in the product ID space with a variety of advanced technology solutions for product marking. Markem management has a history of product innovation that includes recently released hardware and software solutions to support the emerging Radio Frequency Identification (RFID) market with traceability solutions. We believe the Markem team will continue to find new opportunities to leverage its technology into other new applications, further strengthening and diversifying the offerings of Dover's Product ID group."
Jeffrey B. Miller, President of Markem, said: "Once we began reviewing our possible strategic alternatives, Dover clearly stood apart from the rest. It was evident that Markem would integrate well with Dover from a business perspective. It was equally important that Dover encourages and supports Markem in maintaining its core values and collaborative culture as well as our commitment to community."