Richard J. Tobin
Chairman, President and Chief Executive Officer at Dover
Thanks, Brad. I'm on slide eight. Here, we provide some visibility into the contribution of the portfolio of both the ESG, divestiture and the recently closed acquisitions in clean energy components providers, Marshall, Excelsior and Demaco. These transactions continue our purposeful portfolio migration away from capital goods towards higher gross margin, less cyclical and higher growth component businesses that serve secular advantaged end markets. We have been methodical and disciplined in our approach to enhancing the portfolio through acquisitions and patient in our strategic divestitures. We are pleased with the valuations of our two recent divestitures within Engineered Products, ESG announced on Monday and De-Sta-Co, which closed in March that both achieved above 13 times trailing EBITDA multiples, significant premiums for capital goods assets.
The transaction details are on the page due to the timing of the ESG signing and uncertainty of the closing date, we have left ESG in our full year guidance for now. We expect to move ESG discontinued ops in Q3 earnings report, and we'll recast our historical financials and guidance at that time. The ESG earnings profile is shown on the page. And importantly, we're not including any benefit of the transaction proceeds toward value-added capital deployment. We believe we are entering a 12 to 18-month period that represents a unique buying opportunity for attractive assets including many private equity-owned businesses that are overdue for exits in our highest priority areas of inorganic expansion.
Our current balance sheet strength and cash flow forecast reinforced by the proceeds of ESG divestiture positioned us well to remain on the front foot in pursuit of attractive capital deployment opportunities. Let's go to slide nine. I wanted to provide a little more color on our collection of businesses that provide critical flow control and safety components for industrial gas, cryogenics, natural gas and clean energy applications. These businesses expand across both our pumps and process solutions and clean energy and fueling segments, so there is significant commonality in industrial tailwinds and business models. These businesses provide highly engineered components that serve demanding applications in the broader clean energy and industrial gas complexes and there are growing requirements for sustainability, emissions reduction and safety that create favorable product loyalty dynamics and innovation opportunities for us.
Our positions in these attractive markets are supported by strong and recognized technological and application expertise and intellectual property with large installed bases that drive reoccurring replacement demand, as well as exposure to high-growth uses like hydrogen and LNG. We have been active acquirers in the space investing roughly $2 billion over the last several years. We believe these investments should generate mid to high-digit growth at margins accretive to our consolidated portfolio over the long run, this remains a high priority area investment for us moving forward. In light of our recent divestitures, with the scale of this critical component platform now reaching $1 billion of revenue, we intend to readdress our current segment structure in the near future to add focus and disclosures around our growth platforms.
Slide 10 provides a little bit more color on Marshall Excelsior, the larger of the two Energy businesses that we've carved in the last week. MEK acquisition broadens our portfolio in cryogenic valves and other components and expand our participation in several applications, including the expansion into remote monitoring digital controls in cryogenic transport and severe duty valves providing an excellent opportunity for cross-selling. Integrating MEK in to our existing clean energy platforms and centralized support functions should provide significant cost savings. We expect to capture about $12 million in run rate synergies driving MEK to high 20s margin and high single-digit ROIC by year three.
Taking a step back, shows the broad scope of our offering within clean energy applications. We're supplying a variety of safety-critical components like valves, regulators, nozzles, loading norms, dispensing and gas handling equipment for a variety of applications across the high, the whole cryogenic gas value chain from production to consumption. We serve both gas and liquefied gas applications with multiple molecules handled, including LNG, hydrogen propane, oxygen, and nitrogen, among others, and we're benefiting from strong investment momentum by industrial gas majors and global government infrastructure spending. While a smaller deal for us, Demaco was also closed last week, providing us a very important European base of manufacturing to enhance our growth and global scale.
Finally, on Slide 12 shows the long-term performance of the portfolio. We continued to deliver earnings growth through a combination of top line organic growth, margin improvement through operational execution, and returns on productive capital deployment strategies to methodically improve our portfolio over time. Our strong balance sheet position will be further enhanced by the proceeds of the ESG divestiture and in the second half of the year. We expect to end the year with approximately $3 billion in capital deployment firepower from cash and reasonable leverage levels. We have a number of levers available to deliver the second half of the flexible business model that can quickly respond to changes in our dynamic markets.
I'd like to end by thanking ESG President, Pat Carroll and his entire management team for the value they created for Dover shareholders under their tenure.
With that, let's go to Q&A.
