The Right Fit... Novacap, Inc.
    

Novacap is a good example of a long-term Dover company which had grown organically for a number of years and took the opportunity when it arose to acquire a similar European business and, consequently, double in size.


Novacap was founded in 1979 in Burbank, California by the current President, Andy Galliath. Novacap manufactures ceramic multilayer chip capacitors serving the electronics components market. In line with the vast majority of Dover companies, Novacap designs and manufactures niche products and services which satisfy unique and difficult commercial and industrial requirements. The company produces a broad base of general-purpose chips and specializes primarily in high voltage capacitors exceeding 200 Vdc operation to 10kV, used in surge protection and signal filtering. Novacap’s products are used in telecom, computer, aerospace, medical implantable (pacemakers and defibrillators), power supplies, automotive and military applications.
  Novacap was a privately held company whose management remained virtually intact and continued to run the business following the acquisition by Dover in December 1987.
  From 1988 through 1999, Galliath and his team continued to achieve a double-digit annual compounded growth in sales through the development of new products and the expansion into new applications, mainly in the domestic US market.

Syfer Technology

Syfer Technology, based in Norwich, England was formed in the 1930’s initially manufacturing resistors. By the mid 1980’s Syfer had evolved into the manufacture of multilayer ceramic capacitors and by 2000 had become a leading UK designer and manufacturer of these products providing niche application solutions mainly to a European customer base.
  Galliath had maintained contact with Syfer over the years and early in 2000 approached Syfer to discuss the possibility of acquisition. At this time a combination of institutional shareholders, retired managers and current members of the management team owned Syfer. The directors had already decided to invite offers for the business and a sale process was being initiated. 


"The acquisition of Syfer brings together two companies with the technology and expertise to provide the broadest offering world-wide of application specific multilayer capacitors. Being a Dover company gives us the ideal business environment."

Andy Galliath, President of Novacap


  During the course of discussions it became evident that although Novacap and Syfer operated in the same industry and both supplied niche application solutions, there was very little overlap in products, customers, manufacturing processes, marketing and distribution or geographical coverage.
  The management of Syfer wished to remain with the business post-acquisition and were very interested in ensuring that they would operate within a organization which would understand the business and support their growth objectives. Despite strong interest from other potential buyers, John Plaskett and Derek Nicker could see the logic and opportunities in the future by joining Novacap and becoming part of Dover. It also became apparent during the course of the discussions that Syfer would benefit in terms of capacity and efficiency improvements from a rapid investment in equipment and facilities.
  The acquisition of Syfer was completed in July 2000 and since then there has been significant additional investment in the infrastructure of the business including a building addition to the U.K. manufacturing facility.

"We were attracted to Dover because it allows us the freedom to continue to develop our business. We have now been part of Novacap for about 2 years and we really enjoy working with our colleagues in California."

John Plaskett, Managing Director of Syfer