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Dover To Buy Belanger

Dover (DOV) Wednesday said it has agreed to acquire the Belanger Inc. business, a full-line car wash equipment manufacturer. Financial details of the deal were not disclosed.

Following the close of the transaction, Belanger will become part of the OPW business unit, a fluid handling solutions, in Dover's Fluids segment. Belanger is headquartered in Northville, Michigan and employs more than 150 people in the U.S. Belanger generated approximately $55 million in sales in 2018.

The addition of Belanger strengthens OPW's position as one of the largest car wash equipment and systems suppliers with strong brands in both conveyor tunnel and in-bay automatic segments, as well as large vehicle wash solutions.

Dover expects the acquisition to be accretive to margins and adjusted EPS in the first year and to achieve double-digit return on capital in three years.

"With the increasing popularity of commercial car washes, the vehicle wash solutions market is an attractive space where we intend to grow OPW," said Richard J. Tobin, Dover's President and Chief Executive Officer. "We look forward to welcoming the talented team from Belanger. When combined with our PDQ business, one of our OPW brands, we will be able to offer customers a full breadth of products in this attractive market."

The transaction is subject to satisfaction of customary closing conditions, including applicable regulatory approvals, and is expected to close in early 2019.

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