Subject to normal closing conditions and regulatory approvals, the deal when confirmed will be the largest acquisition in the history of Bosch’s aftermarket unit.
The SPX division being sold provides automotive diagnostic and servicing tools, software and shop equipment. It has a significant presence in the tire repair realm.
Based in Warren, Mich., the estimated 2011 sales figures of the unit being sold amount to about $920 million; it employs some 2,700 people in 17 countries, primarily in the U.S., Germany, France and China.
“Acquiring SPX Service Solutions will help make Bosch one of the leading providers of diagnostic solutions,” says Robert Hanser, president of Bosch’s aftermarket division.
“The acquisition will allow us to considerably expand our market presence in the diagnostics business, particularly in North America,” he notes. “In addition, we will strengthen our position in Asia Pacific and Europe, especially in our diagnostics business with automakers.”
“The sale of Service Solutions represents the latest significant development in the transformation of SPX,” says Chris Kearney, SPX’s chairman, president and CEO.
“This divestiture narrows our strategic focus and enhances our ability to build out our Flow Technology segment,” he explains. “Flow Technology is the foundation of our company and we now expect that segment to represent more than 50 percent of our revenue going forward.”
Kearney goes on to point out that “we anticipate after-tax proceeds of approximately $1 billion, which will significantly increase our liquidity and financial flexibility.”
“We are proud that we transformed Service Solutions from a domestic hard tool manufacturer into a global supplier of diagnostic solutions, hard tools and repair information services,” says David Kowalski, the division’s president at SPX.
“Bosch is dedicated to the automotive service sector and has strong relationships with vehicle original equipment manufacturers worldwide,” Kowalski adds. “We believe Service Solutions is a very good strategic fit with Bosch.”
Details about accessing replays of a webcast and conference call discussing the transaction are available through the SPX Internet site.
For more information, visit www.spx.com and www.bosch-automotive.com.