Dover has agreed to sell its automation, workholding and containment solutions company to Stabilus for an enterprise vale of $680.0 million.
Stabilus
STM,
will buy Destaco, part of Dover’s
DOV,
engineered products segment, in an all-cash deal expected to close in the first half of 2024, Stabilus said in a statement.
“This transaction will allow Dover to concentrate our efforts and capital deployment on growing our core platforms,” Dover’s President and Chief Executive Richard J. Tobin said in a separate statement.
Dover is a manufacturer of industrial products with annual revenue of over $8 billion.
Destaco generated revenue of $213 million in 2022 and employs approximately 650 employees across 13 locations in the U.S., Europe, India, China and Thailand.
Stabilus said postmerger synergies, it expects Destaco to achieve a compound annual revenue growth rate of around 9%, or approximately $360 million, in 2028.
The company expects to generate sales synergies of more than 50 million euros ($53.1 million) a year by fiscal 2026. Additionally, Stabilus expects cost synergies of more than EUR10 million annually.