Dover’s Acquisition of Accelerated Companies to Help in the Development of Cavity Pump Applications

Author photo: Tim Shea
ByTim Shea
Category:
Acquisition or Partnership

In line with its expansion strategy, Dover purchased Accelerated Companies for $430 million, subject to a customary adjustment for working capital, to bolster its position in the U.S. shale market.

Headquartered in The Woodlands, Texas, Accelerated Companies' core offerings include electric submersible pumps (ESP), hydraulic jet pump systems, gas lift systems, surface pumping and modular process systems for filtration, separation, heating and other fluid handling operations.

ESP, which are used in oil production to provide an efficient form of artificial lift, can operate across a broad range of flow rates and depths and also prevent pump cavitation. Over the last several years, ESP technology has developed a reputation as a low-maintenance, cost-effective alternative in various fluid-movement surface applications in the petroleum industry.

Accelerated Companies will become part of Dover's energy business after the buyout. The former's innovative ESP offerings and jet pump technologies matches Dover's existing rod lift products well. Together, these are expected to help in the development of cavity pump applications and surface production along with providing artificial lift solutions to customers for the complete life of their wells.

Shale gas in the U.S. is rapidly increasing as an available source of natural gas. The acquisition of Accelerated Companies will benefit Dover's energy segment from the emerging North American trend of installing ESP systems early in the well completion cycle of high flow unconventional oil wells.

Going into 2015, the company sees favorable trends with strong US oil & gas dynamics, strong shipments in Printing & Identification, Waste Handling and Fluids, as well as benefits of recent acquisitions.

Keywords: Electric Submersible Pumps (ESP), Hydraulic Jet Pump Systems, Gas Lift Systems, Surface Pumping, Shale Market, ARC Advisory Group.

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