SPX Corporation has completed its acquisition of CLYDEUNION Pumps, a global supplier of pump technologies used in oil and gas processing, power generation and other industrial applications.
The final agreement, amended Dec. 22, states the total purchase price as 500 million British Pounds (GBP), about $779 million. The agreement also includes a potential earn-out payment next year based on the 2012 EBITDA performance, though the total consideration may not exceed 750 million GBP. The earn out was structured to reduce the upfront payment risks to SPX and better alignment the acquisition agreement with expectations regarding CLYDEUNION’s financial performance.
Christopher Kearney, SPX’s chairman, president and CEO, says that the purchase is consistent with SPX’s long-term strategy of expanding its Flow Technology capabilities. CLYDEUNION will increase SPX’s global presence, especially in emerging markets where there’s significant growth in energy infrastructure.
“We expect this will be a defining acquisition for us,” Kearney says. “It immediately establishes a global platform for our Flow segment in the power and energy sector.”
CLYDEUNION Pumps’ products include centrifugal pumps and reciprocating pumps. It also provides aftermarket repair services on a global basis. CLYDEUNION Pumps has approximately 2,000 global employees, is based in Glasgow, United Kingdom, and operates eight manufacturing facilities and 25 service centers worldwide.