Roper Industries Acquires Dynisco, Leading Provider of Highly Engineered Sensors and Software Used in Testing, Measurement and Control Applications
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Duluth, Georgia, December 15, 2006...Roper Industries, Inc. (NYSE: ROP) today
announced that it has acquired Dynisco LLC from Audax Group for $243 million.
Headquartered in Franklin, Massachusetts with facilities in the United States, Germany and a new facility in Malaysia, Dynisco is a leading global supplier of software and highly engineeredtest, measurement and control technologies utilized in process industries with emergingapplications in life science. The company serves a diverse group of customers throughout theworld, including OEM's, distributors and end users. Dynisco has an installed base of more thanthree million sensors and 14,000 analytical instruments. Among Dynisco brands are AlphaTechnologies and Viatran.
"We are pleased to acquire Dynisco and its market-leading brands, products and oftware
solutions. We expect 2007 EBITDA to exceed $28 million on sales in excess of $100 million,"said Brian Jellison, Chairman, President and Chief Executive Officer of Roper Industries.
"This will be a growth driver as it fits nicely with our sensor technologies and measurement businesses. Dynisco possesses the core characteristics Roper requires in our disciplined acquisition program. It has an outstanding leadership team and generates significant recurring revenue and strong free cash flow. The company is a leader in its existing markets and has significant opportunities to expand in new areas. Dynisco has a diverse, blue-chip customerbase and a track record of technical innovation. With an established global infrastructure,including a growing presence in Asia, Dynisco is well-positioned to capitalize on attractive market opportunities on a worldwide basis."
Dynisco will become part of Roper's Energy Systems & Controls segment, and will work closely with other segments on sensor technology development and applications. Larry Klumpp,President of Dynisco, and his management team will continue to lead the business.
"Joining Roper is a great step forward in the continuing development of Dynisco," said Mr.Klumpp. "With the focus on high-growth, niche-oriented businesses, Roper is in an ideal position to help us further strengthen our business. We are thrilled to become a part of this great company, creating even better opportunities for our employees and customers."
Despite the dilution created in December from the required inventory step-up for Dynisco purchase accounting, Roper expects to report net earnings per share in line with previous guidance. The Company's earnings per share guidance, which excludes the dilutive effect from the Company's convertible notes, is $0.57-$0.61 per share for the fourth quarter and $2.11-$2.15 per share for the full year. For 2007, the acquisition will be immediately accretive to both earnings and cash flow.
About Roper Industries
Roper Industries is a market-driven, diversified growth company with annual revenues in excessof $1.5 billion, and is a component of the S&P MidCap 400 and the Russell 1000 Indexes. Roper provides engineered products and solutions for global niche markets, including water, energy, radio frequency and research/medical applications. Additional information about Roper Industries is available on the Company's website at www.roperind.com.
