Dover to acquire FW Murphy for $530M in cash

Dover announced that it has entered into a definitive agreement to acquire the business of FW Murphy Production Controls for $530M in cash. The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions, including receipt of regulatory approvals. Following the closing of the transaction, FW Murphy will become part of the Dover Precision Components operating unit within Dover’s Pumps & Process Solutions segment. Founded in 1939 and headquartered in Rosenberg, Texas, FW Murphy is a provider of control, remote monitoring, digital-twin-based predictive maintenance, and adaptive performance optimization components, solutions, and instrumentation for reciprocating compressors and associated drive systems. FW Murphy’s solutions are used in natural gas production, transportation, and industrial use markets, as well as in emerging hydrogen and carbon capture applications. The business is expected to generate approximately $120M in revenue in 2023, with substantial aftermarket and recurring revenue. Net of positive tax attributes, the purchase price represents approximately 13x of FW Murphy’s 2023 Adjusted EBITDA, with margin accretive to Dover’s consolidated margin.