SPX Announces Agreement to Purchase Marine and Obstruction Lighting Business of Carmanah Technology Corporation
Transaction Expected to Close During Q1 2019;
Expands and Strengthens SPX’s Position in Engineered Lighting Solutions;
Anticipated to be Modestly Accretive to 2019 Adjusted EPS
CHARLOTTE, N.C., Dec. 12, 2018 (GLOBE NEWSWIRE) — SPX Corporation (“SPX”) (NYSE: SPXC) today announced that it has entered into a definitive agreement to purchase the marine and obstruction lighting business of Carmanah Technologies Corporation (“Carmanah”) for cash consideration of approximately $77 million. Following completion of the transaction, the results of the purchased business will be reported with SPX’s Communication Technologies businesses within its Detection & Measurement segment.
Under the agreement, SPX will purchase the stock of Carmanah’s Sabik subsidiaries (located in Europe and Singapore) as well as certain operating and intellectual property assets of Carmanah’s businesses in Canada and the United States. The transaction is expected to close during Q1 2019 and is contingent upon obtaining approval of Carmanah’s shareholders, as well as other customary closing conditions.
“We are excited to welcome Sabik to the SPX team,” said Gene Lowe, President and CEO of SPX. “This transaction expands and further strengthens SPX’s position in aids-to-navigation specialty lighting solutions by adding highly-engineered technology and products for the marine and obstruction lighting markets. We believe the combination of these industry-leading applications with SPX’s portfolio of communication technologies solutions is a strong strategic fit that will provide significant value creation for our shareholders.”
John Simmons, Chief Executive Officer of Carmanah, commented “We are very pleased with this transaction, which creates numerous opportunities for employees and customers alike. Combining Carmanah’s high-quality lighting products with SPX’s extensive infrastructure and broad distribution network is a great opportunity to further advance product development and extend the reach of these solutions to a broader customer base.”
The acquired business has current annual revenue of approximately $27 million and a similar margin profile to SPX’s Detection & Measurement segment. The acquisition is expected to be modestly accretive to SPX’s 2019 Adjusted EPS, after taking into account a partial year of results and costs to finance the acquisition. SPX plans to provide detailed guidance for 2019 on its call to discuss Q4 2018 results in mid-February 2019. SPX anticipates excluding the effect of one-time costs, purchase accounting items and amortization associated with acquisitions when reporting adjusted results.
About SPX Corporation: SPX Corporation is a supplier of highly engineered products and technologies, holding leadership positions in the HVAC, detection and measurement, and engineered solutions markets. Based in Charlotte, North Carolina, SPX Corporation had approximately $1.4 billion in annual revenue in 2017 and more than 5,000 employees in about 14 countries. SPX Corporation is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com.
About Carmanah Technology Corporation: Carmanah designs, develops and distributes a portfolio of products focused on energy optimized LED solutions for infrastructure. Since 1996, the company has earned a global reputation for delivering durable, dependable, efficient and cost-effective solutions for industrial applications that perform in some of the world’s harshest environments. For more information, please visit www.carmanah.com.
Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please read these statements in conjunction with the SPX’s documents filed with the Securities and Exchange Commission, including the SPX’s annual reports on Form 10-K, and any amendments thereto, and quarterly reports on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements, including the risk that SPX may fail to successfully complete or integrate acquisitions. Actual results may differ materially from these statements. The words “believe,” “expect,” “anticipate,” “project” and similar expressions identify forward-looking statements. Although SPX believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. In addition, estimates of future operating results are based on SPX’s current complement of businesses, which is subject to change.
Statements in this press release speak only as of the date of this press release, and SPX disclaims any responsibility to update or revise such statements.
SOURCE SPX Corporation.
Investor and Media Contacts:
Paul Clegg, VP, Investor Relations and Communications
Pat Uotila, Manager, Investor Relations