Industry Vendor Merger

Just learned that industry vendor Bosch (maker of filters, spark plugs, wipers and other goodies) will acquire industry vendor SPX (manufacturer of tools and service machines like ATF exchange equipment) in a cash deal worth $1.15 billion. (And don't we all wish we had that much cash on us!) You can read about the deal here, or read the press release below:

The Bosch Automotive Aftermarket division plans to acquire the Service Solutions business of SPX Corporation, headquartered in Charlotte, NC. An agreement to this effect was signed in New York City on January 23, 2012. SPX Service Solutions develops, manufactures and sells diagnostic and service tools, workshop equipment, and software for the global automotive aftermarket. For 2011, the business, which is based in Warren, MI, is expected to generate sales of approximately 920 million dollars (660 million euros). It employs some 2,700 associates in 17 countries, primarily in the U.S., Germany, France, and China. This makes the planned acquisition the largest in the history of the Automotive Aftermarket division. The transaction is subject to normal closing conditions and regulatory approvals, and is expected to close during the first half of 2012. The purchase price amounts to 1.15 billion dollars (roughly 883 million euros).

"Acquiring SPX Service Solutions will help make Bosch one of the leading providers of diagnostic solutions," said Robert Hanser, president of the Automotive Aftermarket division. "The acquisition will allow us to considerably expand our market presence in the diagnostics business, particularly in North America. In addition, we will strengthen our position in Asia Pacificand Europe, especially in our diagnostics business with automakers."

The product portfolio of SPX Service Solutions includes vehicle repair solutions, including diagnostic tools and software, as well as special repair service tools. In addition, SPX offers technical information, training programs, equipment for dealerships and repair shops, and services for automaker's service organizations. These products are also used in automakers' authorized dealerships and repair shops. This acquisition will make Bosch a comprehensive provider of solutions for such operations. The products and services of SPX can be found in many different applications, such as passenger cars, heavy-duty trucks, light commercial vehicles, agricultural machinery, and off-highway applications.

David Kowalski, SPX segment president said, "We are proud that we transformed Service Solutions from a domestic hard tool manufacturer into a global supplier of diagnostic solutions, hard tools and repair information services. Bosch is dedicated to the automotive service sector and has strong relationships with vehicle original equipment manufacturers worldwide. We think Service Solutions is a very good strategic fit with Bosch."

(This post written while listening to "Hysteria" by Def Leppard.)