Acme Cryogenics Inc. and RegO, two of this industry’s most recognizable cryogenic equipment companies, both believe its customers will benefit from advanced development of its products following their recent acquisition by Dover.
Both businesses – well-established providers of highly-engineered components and services for the production, storage, and distribution of cryogenic gases – are now part of OPW, an operating company within Dover’s Clean Energy & Fueling segment. In December, it was announced Dover had acquired Acme Cryogenics, and that it had entered into a definitive agreement to acquire Engineered Controls International, LLC (RegO).
Dave Fritz, President and CEO at Acme, believes Dover’s scale and capabilities will enable Acme to enhance its solution offerings. Allentown, Pennsylvania-based Acme employs approximately 205 people and its key products include vacuum jacketed piping, valves and manifolds.
“With the scale of Dover and OPW, we will have additional capabilities and resources to continue innovating and delivering industry-leading state-of-the-art solutions to support the growing needs of our customers,” Fritz told gasworld. “We are excited to have found a partner who can take us to the next level, not just someone who will buy us and leave us alone. We expect that there will be a number of exciting investments, as well as changes to the business so that we can better support our customers and industry.”
Fritz added, “Both OPW and Acme Cryogenics have been serving customers for decades with an intense focus on safety, quality, delivery, innovation and creating value for our partners. Our customers can expect that to continue.”
Elon, North Carolina-based RegO, which manufactures gas flow and control solutions for handling of cryogenic and liquified gas end markets (LNG, LPG, hydrogen, oxygen, nitrogen, argon, carbon dioxide and ammonia) employs approximately 725 people.
Mike Lucas, President and CEO at RegO, told gasworld, “RegO’s prior owners were great partners. They made significant investments into the business to support product development and manufacturing. With OPW, a world-class manufacturing company, that commitment to long-term investment and growth to meet the current and future needs of our customers only accelerates. Dover and OPW have a long tradition of buying great companies, supporting these companies, and growing them over the long term.”
Lucas says RegO is set for more exciting developments with Dover’s support.
“Over the last several months, we have focused on new product development, expansion of our international sales coverage and investing into our manufacturing facilities,” Lucas said. “These will remain our priorities. You can expect to see continued and exciting new announcements around these focus areas.”
Acme, established in 1969, and RegO, established in 1918, have both seen impressive growth recently, which made them attractive for acquisition.
“Acme Cryogenics has experienced strong growth, double-digit in fact, over the past three years,” Fritz said. “Acme also has a strong team who will continue to focus on our customers and leverage pull from the resources of Dover and OPW to make us a stronger partner.”
It was the right time for the acquisitions for both Acme and RegO.
“Acme Cryogenics was at an inflection point with continued strong demand, so it was a good time to find a partner to help take us to the next level in support of our customers and industry,” Fritz said. “When looking for potential buyers, we sought out those who would have the scale and means to invest in the long-term future of our business. Dover and OPW clearly demonstrated a convincing desire to acquire Acme Cryogenics as a platform business to expand into our target end markets.”
Lucas added, “RegO has experienced strong high single-digit growth over the past three years. I am proud of our leadership team that delivered those results. We will continue to focus on our customers and leverage the resources of Dover and OPW to make us a stronger partner.”
For Dover, these acquisitions will enhance its offerings for the hydrogen and LNG applications as well as Dover’s participation in the cryogenic industrial gases end market. Kevin Long, President of OPW, says the double acquisition better positions Dover in the new energy markets.
“The addition of Acme Cryogenics and RegO builds on Dover’s strategy to drive long-term growth in our Clean Energy and Fueling segment by positioning OPW within new energy markets where we can support and deliver innovative products for the world’s evolving energy needs,” Long told gasworld.
“Product offerings and customer relationships of both businesses are highly complementary, and we are very excited about the growth prospects and efficiency opportunities we can drive in the future. All in all, OPW and the broader Clean Energy and Fueling segment are very excited about what we can build with this expanded product offering.
“While we continue to see long-term growth potential for the traditional convenience retail fueling industry, we have been building our portfolio to include cleaner energy alternatives. The Acme and RegO acquisitions are another conscious step in that direction. With these acquisitions, OPW is working to ensure it can provide the right solutions as new energy markets emerge.”
Dover, with headquarters in Downers Grove, Illinois, is a diversified global manufacturer and solutions provider with annual revenue of approximately $8 billion.
In October, Dover announced the acquisition of LIQAL, a supplier of LNG and hydrogen refueling equipment and solutions.
Long added, “LNG is a high growth, emerging industry served by both RegO and Acme. Their primary focus is on components used on LNG-powered tank trucks and fueling sites, where recently acquired Liqal, now part of Dover Clean Energy & Fueling segment, is also a leading player in Europe. LNG-powered trucks are seeing rapid growth in China and Europe, where many prominent OEMs have adopted near-term and long-term goals for LNG as a percentage of new truck sales.
“Acme and RegO are great fits with OPW and the broader Dover Corporation. They both supply small critical components into larger systems often co-developed with original equipment manufacturers and employ multiple routes to market that include distribution and end-customers, as well as a sizeable aftermarket and replacement demand. Both are well-established leaders in their niches with proven and recognized technological edge. Dover and OPW can continue to build upon these proven business models by providing capital, Dover resources, and the OPW global footprint to expand technology and product offerings.”