BUSINESS OPERATIONS
A Look at OPW’s Acquisitions and Market Strategy
FMN:
FMN:
From a branding standpoint (and operationally as well), explain how Dover Corporation’s OPW and Dover Fueling Solutions product families are structured and how the brands are positioned.
Long: OPW and Dover Fueling Solutions are two separate operating companies within the Dover Fluids segment. Dover Fueling Solutions delivers advanced fuel dispensing equipment, payment, automatic tank gauging and wetstock management solutions for the retail fueling industry. OPW delivers piping and containment, vehicle wash systems, tank valves and fittings, vapor recovery systems and nozzles and accessories for a variety of applications across the retail fueling industry. The combined product portfolio between Dover Fueling Solutions and OPW represents the industry’s only endto-end fueling solution for both pressure fueling systems and suction fueling systems.
FMN: The Belanger acquisition in addition to PDQ shows a focus on the car wash segment. While this was hit hard by the recession of 2008, it is certainly rebounding. How do you see that market segment moving forward?
Long: There is a long-term shift from “driveway” and manual washing to professional and automated washing. With technological innovation that delivers a safer and higher-quality service and a more enjoyable customer experience, as well as innovative loyalty programs adopted by operators, we see solid growth in demand for professional vehicle washes, which in turn stimulates long-term growth in demand for vehicle wash equipment. While capital investments will always fluctuate with the general economic environment, we anticipate a robust, long-term expansion in the vehicle wash space. FMNMagazine
Similarly, how will PDQ and Belanger be operated after the acquisition? Will both brands remain? How about their specific product lines? R&D, etc.?
Long: PDQ and Belanger brands will continue to serve the vehicle wash market with their products as part of OPW’s Vehicle Wash Solutions business. Both PDQ and Belanger have spent many years building their reputations as leaders and true innovators in automatic in-bay and conveyorized tunnel vehicle wash solutions. The business will work across both brands to identify and share technologies and best practices that will advance the best that both brands have to offer the industry. Most importantly, the teaming of PDQ and Belanger will allow OPW to provide customers with the most comprehensive end-toend portfolio of vehicle wash solutions.
FMN:
Acquisitions provide opportunities for enhanced operational efficiencies, but historically some acquisition models have been more short-term focused while others more long-term. How do you strike the right balance between efficiency and areas like customer service to an installed base that might have concerns?
Long: Dover and OPW have a long history of successful acquisitions—we understand the value of “do no harm” when it comes to integrating acquired businesses. When considering acquisitions, OPW evaluates how it would integrate the new company with minimal disruptions to customers while positioning it for future growth. Great time and energy are focused on integration planning and careful execution management, and we leverage the expertise Dover Corporation has built over many years of acquisitions. We have a track record of investing in our businesses, and any acquisition is pursued with the strategy of improving our customers’ and employees’ futures.
FMN:
How do you see the U.S. vs. international markets today?
Long: Broadly speaking, OPW operates in a number of fluid handling markets, including retail fueling, car wash solutions and fluid transport. Many of our customers operate globally, and we continue to invest in ways to best serve them with the solutions required in the locations they operate. Currently, we see opportunities in the U.S., Europe and Asia Pacific markets to provide innovative products that meet new country-specific industry regulations. As a global company, our leaders work with local customers to determine future needs and together, we “define what’s next.” n 58
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