SPX Technologies Bolsters Electrical Heating Portfolio Via $418M Acquisition Of ASPEQ Heating Group

SPX Technologies Inc SPXC has entered into a definitive agreement to purchase ASPEQ Heating Group from a private equity firm Industrial Growth Partners.
Under the terms of the agreement, SPXC will purchase ASPEQ and certain tax attributes for $418 million in cash.
ASPEQ will become a part of SPX Technologies' HVAC Heating platform, within its electrical heating business.
Saint Louis, Missouri-based ASPEQ provides electrical heating solutions to customers in industrial and commercial markets under the brands INDEECO, Heatrex, AccuTherm, Brasch, Spectrum, BannerDay PipeHeating, BBC, and Solar Products.
ASPEQ has annual revenue of about $120 million and is expected to be accretive to the margin of SPX Technologies' HVAC segment.
SPX intends to finance the acquisition by drawing on its revolving credit facility and borrowing under its recently announced incremental term loans.
The transaction is expected to close in the second quarter of 2023.
SPXC held $157.1 million in cash and equivalents as of Dec. 31, 2022.
Price Action: SPXC shares are trading higher by 3.22% at $65.73 on the last check Monday.