CHARLOTTE, N.C., May 01, 2023 (GLOBE NEWSWIRE) — SPX Technologies (NYSE:SPXC) announced today that it has entered into a definitive agreement to purchase ASPEQ Heating Group, a leader in electrical heating solutions, from Industrial Growth Partners, a San Francisco-based private equity firm. ASPEQ will become a part of SPX Technologies’ HVAC Heating platform, within its electrical heating business, along with Marley Engineered Products (MEP).
Headquartered in Saint Louis, Missouri, ASPEQ provides electrical heating solutions to customers in industrial and commercial markets under the well-known and respected brands INDEECO, Heatrex, AccuTherm, Brasch, Spectrum, BannerDay PipeHeating, BBC, and Solar Products. ASPEQ has annual revenue of approximately $120 million and is expected to be accretive to the margin of SPX Technologies’ HVAC segment.
Under the terms of the agreement, SPX Technologies will purchase ASPEQ and certain tax attributes for approximately $418 million in cash. SPX Technologies intends to finance the acquisition of ASPEQ by drawing on its revolving credit facility and borrowing under its recently announced Incremental Term Loans. The parties anticipate the closing of the transaction in the second quarter of 2023, subject to regulatory clearance under the Hart-Scott-Rodino Act.
“We are looking forward to welcoming ASPEQ to the SPX Technologies team,” said Gene Lowe, President and CEO of SPX Technologies. “This will be our largest acquisition to date and will significantly expand our portfolio of electrical heating products where we see attractive growth trends, including decarbonization. ASPEQ’s strong brands, custom-configured products and components, and diversified end markets are a very complementary fit with our existing HVAC Heating platform. We see multiple opportunities to enhance new product innovation and create efficiencies for customers through shared channels and resources. This is SPX Technologies’ 13th acquisition since 2018, and further validates our strategy of building high-quality, market-leading platforms, and creating foundations for further growth in closely adjacent end markets.”
Dave Smith, ASPEQ’s President and CEO, said, “The combination of ASPEQ and SPX Technologies’ electrical heating business is a natural next step in the growth of our business that will provide numerous opportunities for employees and customers. Bringing together two strong portfolios of leading electrical heating brands with SPX Technologies’ substantial resources, marketing and channel infrastructure and business system is a recipe for significant growth and value creation. The ASPEQ team looks forward to working with the SPX Technologies team to build an even stronger, more valuable business.”
SPX Technologies was represented by William Blair & Company, LLC as financial adviser and K&L Gates as legal counsel. Baird and Hennepin served as financial advisors and Kirkland & Ellis LLP served as legal counsel for ASPEQ.
About SPX Technologies: SPX Technologies is a supplier of highly engineered products and technologies, holding leadership positions in the HVAC and detection and measurement markets. Based in Charlotte, North Carolina, SPX Technologies has more than 3,300 employees in 15 countries. SPX Technologies is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com.
About ASPEQ: Headquartered in St. Louis, Missouri, ASPEQ is a leading provider of custom-configured electric heating and thermal management products to the industrial, commercial, military, marine, and transportation markets. The Company serves a highly diversified customer base and provides over 30 distinct product categories, including immersion and circulation heaters, duct heaters, tubular elements, unit and comfort heaters, and explosion-proof heaters, among others, as well as integrated controls and spare parts. Products are marketed through a multi-channel approach under the longstanding and well-known INDEECO, Heatrex, AccuTherm, Brasch, Spectrum, BannerDay PipeHeating, and Solar Products brands. ASPEQ was acquired by Industrial Growth Partners in November 2019. For more information, please visit our website at www.aspeqheating.com.
