Dover Acquires FW Murphy
In October 2023, Dover entered into a definitive agreement to acquire the business of FW Murphy Production Controls LLC (FW Murphy) for US$530 million. The transaction closed two months later, officially making FW Murphy part of Dover Precision Components (DPC) operating unit within Dover’s Pumps & Process Solutions (DPPS) segment.
Founded in 1939 and headquartered in Rosenberg, Texas, FW Murphy is a global provider of control, remote monitoring, digital-twin-based predictive maintenance, and adaptive performance optimization components, solutions, and instrumentation for reciprocating compressors and associated drive systems. The acquisition adds complementary offerings to DPC’s Cook Compression product line, enhances DPC’s revenue mix with digital and recurring revenue streams, helps position DPC for growth in compression technologies for clean energy, and allows DPC to capitalize on the growing adoption of next-generation remote monitoring, predictive maintenance, and real-time performance optimization solutions.
ESG Review sat down with Marcell Ulrichs, president of DPC, to discuss the acquisition, what it means for existing customers, and how the deal impacts the gas compression industry.
What prompted the acquisition of FW Murphy?
FW Murphy is a growing business with an industry-leading position offering solutions highly complementary to those offered by DPC’s Cook Compression brand. FW Murphy is a recognized technology leader in specialized instrumentation and control solutions for the natural gas compression and engine space. Their differentiated products are designed to improve the performance and lifespan of natural gas compressors and their engines while helping customers reduce emissions. FW Murphy has developed a strong brand and customer loyalty over many decades of leading the industry with its deep expertise in the control and optimization of reciprocating compressors and engines. The addition of FW Murphy enhances the DPC product portfolio with smart and digital control, monitoring, and optimization solutions, demand for which is growing rapidly in the industry.
How does FW Murphy as an overall business fit into your existing business structure?
FW Murphy, like other DPC brands, has a long history and proven track record of helping customers maximize the efficiency, reliability, and emissions compliance of their most critical assets. To continue providing high-quality products and services to our customers, FW Murphy will remain a standalone business unit, similar to our other brands, within the DPC operating model. No immediate changes in the operation of FW Murphy are anticipated. We will continue to deliver our products with FW Murphy’s traditional focus on high quality and excellent customer service. In the future, we envision great potential to bring new solutions to the market that use the strengths of FW Murphy and other DPC organizations to the benefit of our customers.
Discuss the specific products, facilities, and technologies the acquisition includes and how they fit into your existing portfolio.
Both companies have a long history of innovating to create components and systems for reciprocating compressors to help operators stay in step with evolving emissions regulations. Cook Compression, with its COOK CLEAN Sealing System, offers proven technology that helps reduce fugitive emissions to near-zero levels. FW Murphy’s Engine Integrated Control System (EICS) helps run engines in compliance with emissions standards with minimal effort from users while alerting to potential problems. This proven system with advanced diagnostics, robust components, and a fully integrated approach is the leader in the industry for optimal engine performance. Cook Compression, together with FW Murphy, solidifies DPC’s position as a technology leader and prime supplier of emissions reductions solutions in the natural gas space.
Discuss opportunities this acquisition creates for existing customers of FW Murphy, as well as the opportunities this acquisition creates for Dover’s existing customers.
Regulations are prompting many customers and operators to fast-track their plans to transform maintenance schedules from a time-based or reactive failure-based process to a proactive performance-based process. For example, new US Environmental Protection Agency regulations require companies to monitor leakage rates and replace rod packing when leakage rates exceed two standard cubic feet per minute. For our customers, this means that within the next five years, every compressor in operation must have the capability to monitor leakage rates and remain within the regulated leakage allowance. Cook Compression developed the COOK CLEAN Sealing System that helps reduce fugitive emissions to near-zero levels to assist our customers with tackling evolving regulations. The COOK CLEAN Sealing System also perfectly complements the monitoring and diagnostic capabilities of FW Murphy products. DPC now has a comprehensive solution that provides both monitoring for proactive maintenance and best-in-class compressor components to help minimize future leakage rates.
