SPX Technologies, Inc. (‘SPXC’ or the Company) announced that it has completed the acquisition of ASPEQ Heating Group (‘ASPEQ’) including certain tax attributes for US$ 418 million in cash, subject to closing adjustments.
ASPEQ, a global provider of electrical heating solutions to customers in industrial and commercial markets, is now a part of SPX Technologies’ HVAC Heating platform.
Rise in 2023 full-year guidance for adjusted earnings
To reflect this transaction, the Company has increased its 2023 full-year guidance for adjusted earnings per share of US$ 3.90 to US$ 4.05 from a prior range of US$ 3.80 to US$ 3.95.
The increase in guidance reflects a partial year of ownership of ASPEQ and the impact of financing costs associated with the transaction.
SPX Technologies acquires ASPEQ Heating Group
We are excited to welcome the ASPEQ team to the SPX Technologies family"
At the midpoint, updated adjusted EPS guidance represents a year-on-year increase of approximately 28%. Management expects ASPEQ to have annual revenue of approximately US$ 120 million, and higher-than-company-average sales growth and margins.
“We are excited to welcome the ASPEQ team to the SPX Technologies family,” said Gene Lowe, the President and Chief Executive Officer (CEO) of SPX Technologies, adding “This transaction more than doubles SPX Technologies’ position in electrical heating and expands our value-creation opportunities in highly-complementary and attractive industrial and commercial end markets.”
Combined business offers long-term growth potential
Gene Lowe continues, “We see significant long-term growth potential for our combined businesses, as well as nearer-term benefits from favorable secular trends, such as electrification, decarbonization, and re-shoring.”
Dave Smith, ASPEQ’s President and Chief Executive Officer (CEO), said “We are delighted to be joining SPX Technologies’ electrical heating team. Bringing together SPX Technologies’ marketing and channel infrastructure and business systems with ASPEQ’s technology, and strong product development and applications expertise creates numerous opportunities for employees, customers, and shareholders.”
Building a stronger, more valuable platform
Dave Smith adds, “I personally look forward to working with the SPX Technologies team to build an even stronger, more valuable platform.”
