SPX Corp has entered into a definitive agreement with Clyde Blowers Capital, SCF-VI Offshore, Appleby Nominees (Jersey) and certain members of CLYDEUNION management to acquire CLYDEUNION Pumps. With projected 2011 revenue of approximately £400 million, CLYDEUNION Pumps is a leading global supplier of pump technologies that are used in oil and gas processing, power generation and other industrial applications, including mining and minerals. Its primary products include centrifugal pumps and reciprocating pumps. It also provides aftermarket repair services on a global basis.
CLYDEUNION Pumps provides solutions for minerals and mining process applications; including pumps for mine dewatering, water supply (seawater & desalinated), reclaim water return, leaching (lixiviation), acids and solvents, boiler feed, and reverse osmosis plants. In addition, CLYDEUNION Pumps now offers pumps, parts, and service solutions for abrasive solids/slurry transport applications. Products include:
- Axially split pumps; Uniglide and Duoglide,
- End suction pumps; Isoglide, Aquaglide, and Swallowglide
- Multistage pumps: CUP-BB3, CUP-FT/FK, Spiroglide, and HPRO
- Vertical Turbine pumps: VS1
- Electric Submersible pumps: Ulectriglide
- Vertical Sump pumps: CUP- VS4
- Horizontal Slurry pumps: IMBIL-IS
- Chemical process pumps: IMBIL- ANSI
- Self Priming pumps: IMBIL- E/EP
- Solutions include pumps, parts, and aftermarket services for repairs and upgrades.
The acquisition purchase price is £700 million. The agreement also includes a potential earn out of up to £50 million based upon the acquired company’s 2012 EBITDA. The transaction is subject to customary closing conditions and is expected to be completed in Q4 2011. CLYDEUNION Pumps has approximately 2,000 global employees. It is based in Glasgow, UK and operates eight manufacturing facilities and 25 service centres
worldwide.
Christopher J. Kearney, SPX’s Chairman, President and Chief Executive Officer, said, “With its high quality pumps, well-recognised brand and global capabilities, CLYDEUNION is well-positioned to benefit from increases in global energy demand driven by the industrialization of emerging regions throughout the world. This acquisition expands our position in global power and energy and is consistent with our long-term strategy. We believe CLYDEUNION is an excellent strategic addition to our Flow Technology segment.”
Don Canterna, President of SPX Flow Technology, said, “CLYDEUNION is one of the true pioneers in the process equipment industry and it has a very strong reputation for engineering excellence, quality performance and reliability. It has an experienced management team with a proven track record that has strategically increased its market position in the global power & energy industry.
“Our current SPX Flow Technology product portfolio has a niche position in power & energy markets through well-recognised pump brands including Bran & Luebbe and Plenty Mirrlees, as well as our Copes-Vulcan and M&J valve brands. The acquisition of CLYDEUNION will expand our niche market position and create a global power and energy platform for SPX Flow Technology.”