HAMILTON, Ohio, and AUSTIN, Texas -- Dover has entered into a definitive agreement to acquire Wayne Fueling Systems Ltd. With this acquisition, Dover’s product line will encompass the entire fueling system, from dispensers and payment platforms to underground storage tanks.
“Today’s announcement marks an exciting new milestone in our 125-year history,” said Neil Thomas, CEO of Wayne. “We believe that combining Wayne’s innovative products and technologies with Dover’s existing retail fueling equipment portfolio will significantly benefit customers around the world.”
Private-equity firm Riverstone Holdings LLC agreed to sell Austin, Texas-based Wayne, a provider of fuel dispensing, payment and aftermarket services, for $780 million in cash, as reported in a McLane Co./CSP Daily News Flash. This will be the latest of many changes in ownership for Wayne over the past decade. Riverstone acquired the company in 2014 from GE Electric Co. as the latter was streamlining its business. GE had bought Wayne as part of its 2010 acquisition of Dresser Inc.
“We would like to express our sincere appreciation to Neil and the entire Wayne team for the excellent partnership we have enjoyed and the success achieved by the business in recent years,” said John Lancaster, partner with Riverstone. “With such complementary businesses and a continued focus on innovative technology, we are confident that Wayne will continue to flourish under Dover’s ownership.”
Dover expects the transaction to close in second-half 2016 and to fund it with cash on hand and incremental debt. Once the acquisition finalizes, Dover’s annualized retail fueling revenue would reach $1.4 billion. The company had just completed its acquisition of Tokheim Group SAS’ dispensers and systems business in January, adding it to the OPW business unit.
Robert A. Livingston, president and CEO of Dover, Hamilton, Ohio, said that Wayne “fits perfectly” with the Tokheim and OPW product offers, which include below-ground components such as underground storage tanks and piping, as well as aboveground equipment such as dispensing nozzles, Stage II Vapor Recovery systems and breakaways.
Wayne's offerings include the Ovation2 and Helix fuel dispensers, NAMOS point-of-sale system and the iX Pay EMV-compliant payment platform. It has sold and supported its product line through a global network of distributors and service partners in more than 140 countries, and it has manufacturing operations in the United States, Sweden, China and Brazil.
“Together, the collective business will offer an end-to-end solution that will benefit our customers in the growing global retail fueling market,” said Livingston. “The addition of Wayne positions Dover to more fully participate in the high-growth EMV upgrade cycle underway in the United States. This transaction also provides significant margin enhancement opportunities, driven by synergies across the businesses.”
Wayne’s estimated annual revenue for 2016 is about $550 million. The multiple for the transaction was about 10X 2016 expected EBITDA. This does not include estimated annual run-rate synergies of $30 million, which Dover expects to achieve over three years.