Subject to closing adjustments, SPX Technologies, Inc. declared that it has successfully acquired ASPEQ Heating Group for $418 million in cash, along with some tax benefits. The HVAC Heating platform from SPX Technologies now includes ASPEQ, an industry leader in electrical heating solutions for customers in the industrial and commercial sectors.

 

The Company has lifted its guidance for adjusted earnings per share* for the full year of 2023 from a prior range of $3.80 to $3.95 to $3.90 to $4.05 in order to reflect this transaction. The revised guidance accounts for the impact of financing costs related to the purchase as well as the partial year of ownership of ASPEQ. The midpoint of the modified adjusted EPS* projection represents an increase of almost 28% from the prior year. According to management, ASPEQ could generate revenue of about $120 million each year with sales growth and margins that are above average for the industry.

 

“We are excited to welcome the ASPEQ team to the SPX Technologies family,” said Gene Lowe, President and CEO of SPX Technologies. “This transaction more than doubles SPX Technologies’ position in electrical heating and expands our value-creation opportunities in highly complementary and attractive industrial and commercial end markets. We see significant long-term growth potential for our combined businesses, as well as nearer-term benefits from favorable secular trends such as electrification, decarbonization, and reshoring.”

 

Dave Smith, ASPEQ’s President and CEO, said, “We are delighted to be joining SPX Technologies’ electrical heating team. Bringing together SPX Technologies’ marketing and channel infrastructure and business system with ASPEQ’s technology, and strong product development and application expertise creates numerous opportunities for employees, customers, and shareholders. I personally look forward to working with the SPX Technologies team to build an even stronger, more valuable platform.”