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Highly Strategic Addition to HVAC Heating Platform
Accelerates High-Efficiency Commercial Boiler Strategy
Enhances New Product Development Capabilities
CHARLOTTE, N.C., Nov. 13, 2019 (GLOBE NEWSWIRE) -- SPX Corporation (NYSE:SPXC) announced today that its subsidiary, The Marley Company, LLC, has acquired Patterson-Kelley from Harsco Corporation for cash consideration of approximately $60 million. Patterson-Kelley is a manufacturer and distributor of commercial boilers and water heaters headquartered in East Stroudsburg, PA. The results of the purchased business will be reported with SPX’s Heating platform within its HVAC segment.
Gene Lowe, SPX Corporation’s President and CEO, commented, “We are excited to welcome the Patterson-Kelley team to SPX. Patterson-Kelley is an excellent fit with SPX’s HVAC Heating platform that strengthens and accelerates our strategy in high-efficiency commercial boilers, and further enhances our product development capabilities. We look forward to the growth opportunities this transaction presents for employees and shareholders alike.”
Nick Grasberger, Chairman and CEO of Harsco Corporation, commented, “This transaction is a great outcome for Patterson-Kelley as it will become part of a diversified global company that appreciates and values the business and is committed to growing it for the benefit of its customers and employees.”
Patterson-Kelley is expected to have full-year 2019 revenue of approximately $35 million and a similar margin to SPX’s overall HVAC segment average. The acquisition is expected to have a minimal impact on SPX’s 2019 Adjusted EPS, after taking into account the partial fourth quarter of results and costs to finance the acquisition. SPX plans to provide detailed guidance for 2020 on its call to discuss Q4 2019 results in mid-February 2020.
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 2018 and approximately 4,000 employees in 17 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 Harsco Corporation: Harsco Corporation is a global market leader providing environmental solutions for industrial waste streams and innovative technologies for the rail and energy sectors. Based in Camp Hill, PA, the 11,000-employee company operates in more than 30 countries. Harsco’s common stock is a component of the S&P SmallCap 600 Index and the Russell 2000 Index. Additional information can be found at www.harsco.com.
Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please read these forward-looking statements in conjunction with the SPX’s documents filed with the Securities and Exchange Commission, including its most recent annual report on Form 10-K. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. In addition to these risks and uncertainties, statements with respect to the acquired business’s full-year revenue and operating margin are subject to risk and uncertainties similar to those affecting SPX’s other operations. 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 SPX’s future operating results are based on its 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