SPX to Acquire CLYDEUNION Pumps
Aug 25 2011
SPX Corporation (USA) announces that it has entered into a definitive agreement with Clyde Blowers Capital s.à r.l, SCF-VI Offshore L.P., Appleby Nominees (Jersey) Limited, and certain members of CLYDEUNION management to acquire CLYDEUNION Pumps.
The acquisition purchase price is £700 million. The agreement also includes a potential earn out of up to £50 million based upon the acquired company’s 2012 EBITDA. The transaction is subject to customary closing conditions and is expected to be completed in Q4 2011.
With projected 2011 revenue of approximately £400 million, CLYDEUNION Pumps is a leading global supplier of pump technologies that are utilized in oil and gas processing, power generation and other industrial applications. Its primary products include centrifugal pumps and reciprocating pumps. It also provides aftermarket repair services on a global basis.
CLYDEUNION Pumps has approximately 2,000 global employees. It is based in Glasgow, United Kingdom and operates 8 manufacturing facilities and 25 service centers worldwide.
Christopher J. Kearney, SPX’s Chairman, President and Chief Executive Officer, said, “With its high quality pumps, well-recognized brand and global capabilities, CLYDEUNION is well-positioned to benefit from increases in global energy demand driven by the industrialization of emerging regions throughout the world. This acquisition expands our position in global power and energy and is consistent with our long-term strategy. We believe CLYDEUNION is an excellent strategic addition to our Flow Technology segment.”
Don Canterna, President of SPX Flow Technology, said, “CLYDEUNION is one of the true pioneers in the process equipment industry and it has a very strong reputation for engineering excellence, quality performance and reliability. It has an experienced management team with a proven track record that has strategically increased its market position in the global power & energy industry.
“Our current SPX Flow Technology product portfolio has a niche position in power & energy markets through well-recognized pump brands including Bran & Luebbe and Plenty Mirrlees, as well as our Copes-Vulcan and M&J valve brands. The acquisition of CLYDEUNION will expand our niche market position and create a global power and energy platform for SPX Flow Technology.”
Evercore Group L.L.C. acted as financial advisor to SPX.
SPX also announced that it is reaffirming its previously announced guidance for the third quarter and full year 2011, excluding the impact of the acquisition.
SPX management will hold a conference call at 8:30 am Eastern time on Thursday, August 25, 2011 to discuss the details of this acquisition and its confirmation of 2011 guidance. Those interested in participating in the conference call should dial in five minutes prior to the start of the call. The call will be simultaneously webcast via the company’s website at http://www.spx.com/ and the slide presentation will be available in the Investor Relations section of the site.
Dial in: 800-901-5226
From outside the United States: +1 617-786-4513
Participant code: 86383159
The replay of the web cast will be available on SPX’s website through Thursday, Sept. 8th. A replay of the call will be available by telephone through Thursday, Sept. 1st.
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