SPX Corporation announced that it has completed its acquisition of CLYDEUNION Pumps, a global supplier of pump technologies that are utilized in oil and gas processing, power generation and other industrial applications.
In the final agreement as amended Dec. 22, 2011, the total purchase price comprises 500 million British Pounds ("GBP"), paid at closing, plus a potential earn-out payment in 2013 based on 2012 EBITDA performance. The total consideration may not exceed 750 million GBP. See the company's filings with the Securities and Exchange Commission, including the Current Report on Form 8-K filed December 22, 2011, for more details. The structure of the earnout was revised to better align with CLYDEUNION's financial performance expectations, while the reduced upfront payment reduces risk to SPX.
"Our purchase of CLYDEUNION is consistent with our long-term strategy of expanding our Flow Technology capabilities, and we expect this will be a defining acquisition for us, as it immediately establishes a global platform for our Flow segment in the power and energy sector," said Christopher J. Kearney, SPX's Chairman, President and Chief Executive Officer. "CLYDEUNION also will increase our global presence, particularly in emerging markets where energy infrastructure growth is strongest. We expect this high-quality business to perform well under the proven leadership of Flow Technology segment president Don Canterna and his global team."
CLYDEUNION Pumps' 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, is based in Glasgow, United Kingdom, and operates eight manufacturing facilities and 25 service centers worldwide.
Based in Charlotte, N.C., SPX Corporation is a global Fortune 500 multi-industry manufacturing leader with more than $5 billion in annual revenue, operations in more than 35 countries and approximately 16,000 employees. The company's highly-specialized, engineered products and technologies serve customers in three primary strategic growth markets: infrastructure, process equipment and diagnostic tools. The company's products include thermal heat transfer equipment for power plants; power transformers for utility companies; process equipment for the food & beverage industry; and diagnostic tools and equipment for the vehicle service industry.