SPX Technologies has completed its acquisition of ASPEQ Heating Group – joining Marley Engineered Products to create an industry leader in commercial and industrial electric heat. Here is the press release that was issued earlier today:
CHARLOTTE, N.C., June 05, 2023 (GLOBE NEWSWIRE) — SPX Technologies, Inc. (NYSE:SPXC) (“the Company”, “we”, or, “our”) announced that it has completed the acquisition of ASPEQ Heating Group (“ASPEQ”) including certain tax attributes for $418 million in cash, subject to closing adjustments. ASPEQ, a leading provider of electrical heating solutions to customers in industrial and commercial markets, is now a part of SPX Technologies’ HVAC Heating platform.
To reflect this transaction the Company has increased its 2023 full-year guidance for adjusted earnings per share* of $3.90 to $4.05 from a prior range of $3.80 to $3.95. The increase in guidance reflects a partial year of ownership of ASPEQ and the impact of financing costs associated with the transaction. 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 $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, President and CEO of SPX Technologies. “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. 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 reshoring.”
Dave Smith, ASPEQ’s President and 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. I personally look forward to working with the SPX Technologies team to build an even stronger, more valuable platform.”