On November 5th, 2012, Dover Corporation announced that its Board of Directors authorised an additional share repurchase program, whereby Dover expects to repurchase $1 billion of its common stock over the next 12 to 18 months. The share repurchase program will be funded by cash on hand, proceeds from divestitures and free cash flow. Dover also announced that, consistent with its long-term focus on strengthening its portfolio, it intends to divest certain non-core businesses which serve the electronic assembly and test markets. This includes DEK. The company has been part of Dover Corporation since 1985 and has grown significantly over this period, despite the inevitable market cycles in its chosen operating segments. The cyclical nature of DEK’s end markets is counter to the strategic direction that Dover is now pursuing.
Michael Brianda, President of the DEK Group, said, “Dover’s decision presents an opportunity for our organisation to flourish with a future owner who is more aligned with our markets and strategies for future technology investments. We are solely focused on doing the right thing for our global customers and I have no doubt, with our technology expertise and dedication, we will continue to exceed expectations.”
“DEK’s great success is attributable to our talented people around the world, our excellent product and service portfolios and the focus those things which add value for our customers”, concluded Brianda. “Experienced in meeting Dover’s high expectation for results, we are today operating out of a position of strength and growing new capabilities will be our emphasis as we move forward.” Dover has stated that it will provide updates on the progress of the planned divestitures as appropriate.
Share:
