Acquisition to Expand SPX Global Process Equipment Manufacturing and
Distribution Operations
CHARLOTTE, N.C., Oct. 31 /PRNewswire-FirstCall/ -- SPX Corporation
(NYSE: SPW) today announced that it has entered into a definitive agreement
to acquire APV, a global manufacturer of process equipment and engineered
solutions primarily for the sanitary market. APV is a division of Invensys
PLC, an international industrial automation, transportation and controls
group headquartered in London. APV will become a part of SPX's flow
technology segment.
APV's primary products include pumps, valves, heat exchangers and
homogenizers for the food, dairy, beverage and pharmaceutical industries.
SPX expects the transaction to close by year-end 2007, subject to customary
regulatory approvals and closing conditions, including resolution of the
purchase and sale of APV France.
"APV is a strong strategic fit with SPX and will expand our
manufacturing, sales and distribution operations for process equipment in
Europe, Asia Pacific and worldwide," said Chris Kearney, Chairman,
President and CEO of SPX. "By combining APV's research and development and
engineering expertise, together with its strong portfolio of process
solutions and technical knowledge, with SPX's existing businesses, we
expect to enhance our growth in the flow technology arena," he added.
SPX has agreed to pay 250 million British pounds (GBP) (approximately
$510 million) for APV, subject to closing adjustments. Revenues for APV
were about $800 million for the fiscal year ending March 31, 2007. SPX
plans to fund the acquisition with a mixture of borrowings and cash on
hand. APV has approximately 3,000 employees in over 40 countries. The
addition of APV will bring the total number of SPX employees to
approximately 17,000 worldwide.
"APV's products are highly complementary to our existing flow product
portfolio and we expect significant product, production and cost synergies
for our process equipment business," said Don Canterna, SPX Segment
President, Flow Technology.
This is the third European acquisition by SPX in 2007. The company
previously acquired the European diagnostics division of Johnson Controls,
located in Pontoise, France, and Matra-Werke GmbH, a wholly owned
subsidiary of KION Group GmbH, located in Wiesbaden Germany.
The company will discuss additional details of this acquisition during
a previously scheduled investor webcast to report third quarter 2007
earnings today, Wednesday, October 31, at 8:30 a.m. Eastern Time with Chris
Kearney, Chairman, President and CEO, Patrick O'Leary, Executive Vice
President and Chief Financial Officer and Don Canterna, SPX Segment
President, Flow Technology. Those interested in participating in the
conference call may dial in 5 minutes prior to the start of the call. The
call will be simultaneously webcast via the company's website at
http://www.spx.com . The slide presentation (from this call) will also be
available in the Investor Relations section of the company's website.
Conference call
Dial in #: 800-289-0572
913-981-5543 from outside the United States
SPX Corporation is a Fortune 500 multi-industry manufacturing leader.
The company offers highly-specialized engineered solutions to solve
critical problems for customers.
SPX is focused on providing solutions that support the expansion of
global infrastructure, with particular emphasis on the growing worldwide
demand for energy and power. Its innovative and environmentally friendly
product portfolio includes cooling systems for all types of power plants
throughout the world; custom engineered pumps, valves and mixers that
assist a variety of flow processes including oil and gas exploration,
distribution and refinement; handheld diagnostic tools that aid in vehicle
maintenance and repair, and power transformers that regulate voltage for
electrical transmission and distribution by utility companies.
SPX is headquartered in Charlotte, North Carolina and employs over
14,000 people worldwide in over 20 countries. Visit http://www.spx.com. (NYSE:
SPW)
Certain statements in this press release, including any statements as
to the results of the transaction, timetable of the transaction, benefits
and synergies of the proposed transaction, future results of operations or
market opportunities, may be forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934, as amended, and are
subject to the safe harbor created thereby. Please refer to our public
filings for a discussion of certain important factors that relate to
forward-looking statements contained in this press release. Other risks
include failing to receive necessary regulatory approvals, difficulties in
integrating APV's businesses or in achieving synergies, and failure to
achieve anticipated financial results from the transaction. The words
"plan," "expect" and similar expressions identify forward-looking
statements. Although the company believes that the expectations reflected
in its forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to be correct. Statements in the press
release speak only as of the date of this press release, and SPX disclaims
any responsibility to update or revise such statements.
SOURCE SPX Corporation
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Related links:
http://www.spx.com
CONTACT:
Investors, Jeremy W. Smeltser,
+1-704-752-4478, investor@spx.com, Media, Jennifer H. Epstein,
+1-704-752-7403, jennifer.epstein@spx.com, both of SPX
Corporation
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