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.
