Dover acquires RegO parent company

December 17, 2021 By    

Dover agreed to acquire RegO parent company Engineered Controls International LLC for $631 million in cash, subject to customary purchase price adjustments. It also completed the acquisition of Acme Cryogenics Inc. for $295 million in cash.

The RegO acquisition includes tax step-up benefits with a net present value of about $35 million. Both businesses will become part of the OPW Global (OPW) operating unit within Dover’s Fueling Solutions segment.

RegO, established in 1918 and headquartered in Elon, North Carolina, and Acme, established in 1969 and headquartered in Allentown, Pennsylvania, are providers of components and services that facilitate the production, storage and distribution of cryogenic gases used in a diverse set of applications. The businesses supply components such as valves, regulators, vacuum jacketed piping, fittings, safety devices, liquefied natural gas fueling components and other specialty flow control devices to customers from a variety of end markets.

RegO employs about 725 people and is expected to generate about $210 million in sales in full year 2021, according to Dover. Acme employs about 205 people and is expected to generate about $70 million in sales in full year 2021. RegO has delivered annualized growth in the high single digits over 2018-21. Acme has generated double-digit average annual revenue growth, excluding the impact of acquisitions, over the same period. Both businesses grew in 2020. The acquisitions are expected to be accretive to Dover’s consolidated EBITDA margins, with additional significant synergy potential from leveraging Dover’s operating scale and capabilities.

Dover says the companies’ products are complementary to its existing clean energy solutions, and will enhance its offerings for the hydrogen, liquefied natural gas and liquefied petroleum gas applications, as well as Dover’s participation in the cryogenic industrial gases end market. Upon closing of both acquisitions, the expanded clean energy applications within Fueling Solutions are expected to generate over $300 million in annual sales, including about $100 million of sales from cryogenic gas applications.

“The acquisitions of Acme and RegO are the next step in our strategy to enhance the Fueling Solutions portfolio with growing participation in clean fuels and other attractive adjacencies,” says Richard J. Tobin, Dover’s president and CEO, in a press release. “On the back of our recent acquisition of LIQAL and our partnerships in electric vehicle charging, these two acquisitions will scale up our position as a leader in the growing clean and alternative fuel applications, as investments in this space are rapidly accelerating. We are also excited to establish a position in an attractive cryogenic gas adjacency, which offers robust organic and inorganic growth prospects.”

The RegO transaction, which is expected to close in the fourth quarter of 2021, is subject to the satisfaction of customary closing conditions, including applicable regulatory approvals. Both transactions are being funded through a combination of cash on hand, proceeds from recent divestitures and commercial paper.

Dover will host a live webcast and conference call to provide further information on the RegO and Acme transactions.

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About the Author:

Brian Richesson is the editor in chief of LP Gas Magazine. Contact him at or 216-706-3748.

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