SPX Subsidiary Completes Acquisition of Assets of Yuba Heat Transfer LLC
09 December 2009 - 12:06AM
PR Newswire (US)
Expands Portfolio of Solutions Serving Global Power and Energy
Sector CHARLOTTE, N.C., Dec. 8 /PRNewswire-FirstCall/ -- SPX
Corporation (NYSE: SPW) today announced that its SPX Heat Transfer
Inc. subsidiary has completed an acquisition of substantially all
the assets and certain liabilities of Yuba Heat Transfer LLC
("Yuba"), a leading global supplier of heat transfer equipment
utilized by nuclear, solar, geothermal, gas and coal power
generation facilities. The purchase price was approximately $125
million. Based in Tulsa, Oklahoma, the company's feedwater heaters
and condensers are sold under the Yuba and Ecolaire brands, and
more than 10,000 Yuba heat transfer products have been installed at
power generation facilities around the world. Yuba's annual sales
were approximately $125 million in 2008, with roughly 80 percent
coming from the United States and the rest from developing markets
such as India, the Middle East and South America. SPX expects the
acquisition to be modestly accretive to earnings in 2010. "This
transaction firmly establishes SPX Heat Transfer Inc. as a leading
provider of heat transfer components and systems serving the global
power generation industry," said SPX Chairman, President and Chief
Executive Officer Christopher J. Kearney. "We expect the company's
facilities, market position and broad array of proven heat transfer
solutions to significantly expand the competencies and reach of our
existing global heat exchanger business." "This strategic
acquisition is meant to position SPX Heat Transfer Inc. to address
the U.S.'s rapidly aging energy infrastructure," Kearney added. SPX
first announced that its SPX Heat Transfer Inc. subsidiary had
entered into a definitive agreement with Connell Limited
Partnership and Yuba on November 3, 2009. SPX Heat Transfer Inc.
will be reported as part of SPX's Thermal Equipment and Services
segment. "Through this acquisition, SPX Heat Transfer Inc.'s
product portfolio adds two well known brands in the power
generation industry: Yuba and Ecolaire," said Drew Ladau, Segment
President of SPX Thermal Equipment and Services. "SPX Heat Transfer
Inc., working together with our SPX Cooling Technologies and
Balcke-Durr businesses, will be able to offer an expanded product
portfolio, including cold-end optimization solutions and moisture
separator reheaters (MSRs) to our customers. As a result of the
acquisition, we expect our MSRs, which are designed to enhance the
efficiency and performance of nuclear power generation facilities,
to be more readily available in the United States." SPX Thermal
Equipment and Services is a leading provider of wet, dry and hybrid
cooling towers, heat exchangers, air and flue gas systems and
filter systems, utilized by thousands of power stations and plants
in more than 60 countries across six continents. The segment's
broad offering enables the maintaining, refurbishing, upgrading and
modernizing of power stations, and includes a wide range of
aftermarket services and solutions. About SPX SPX Corporation is a
Fortune 500 multi-industry manufacturing leader. The company offers
highly-specialized engineered solutions to solve critical problems
for customers. SPX is focused on providing solutions that support
the expansion of global infrastructure, with particular emphasis on
the growing worldwide demand for energy and power. Its innovative
product portfolio, containing many energy efficient products,
includes cooling systems for power plants throughout the world;
custom engineered process equipment that assists a variety of flow
processes including food and beverage manufacturing, oil and gas
exploration, distribution and refinement and power generation;
handheld diagnostic tools that aid in vehicle maintenance and
repair; and power transformers that regulate voltage for electrical
transmission and distribution by utility companies. SPX is
headquartered in Charlotte, North Carolina and has employees in
over 40 countries worldwide. Visit http://www.spx.com/. (NYSE:SPW)
Certain statements in this press release including any statements
relating to post-acquisition results, may be forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and are subject to the safe
harbor created thereby. Please refer to our public filings for a
discussion of certain important factors that relate to
forward-looking statements contained in this press release. The
word "expect," "anticipated" and similar expressions may identify
forward-looking statements. Although the company 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. Statements in the press release speak only as
of the date of this press release, and SPX disclaims any
responsibility to update or revise such statements. DATASOURCE: SPX
Corporation CONTACT: Ryan Taylor (Investors), +1-704-752-4486, , or
Jennifer H. Epstein (Media), +1-704-752-7403, , both of SPX
Corporation Web Site: http://www.spx.com/
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