Prolec GE to acquire SPX’s Transformer Solutions business
Mexico, Monterrey: GE-Prolec Transformers, Inc., announced on 9 June it has signed a definitive agreement with SPX Corporation.
The agreement was signed for acquisition of SPX Transformer Solutions business (SPXT) for a cash purchase price of $645 M subject to customary net working capital and similar adjustments at closing. SPX Transformer Solutions is known for its Waukesha® transformers, services and components. The acquisition is expected to enhance Prolec GE’s position as a key distribution and power transformer player providing customers with a wider choice of products and an enhanced next-generation portfolio.
Ricardo Suarez, CEO of Prolec GE said, “Prolec GE’s vision is to be recognized as the most reliable and strategic partner to our customers for innovative and sustainable energy solutions. The combined entity will remain a strong partner to its customers and will be better suited to continue delivering quality products and supporting the evolution of the grid in the United States and the rest of the Americas. We look forward to welcoming the SPX Transformer Solutions team to the Prolec GE family.”
Gene J. Lowe, President & CEO of SPX commented, “I am very proud of the accomplishments of the SPX Transformer Solutions team which has substantially increased the operational performance of the business and continued to drive improvements to deliver value for customers. As a key provider of high-quality, sustainable solutions for the delivery of electrical energy, Prolec GE is an excellent fit to lead the next phase of growth and value for SPX Transformer Solutions’ customers and employees alike.”
The agreement is expected to close by the end of 2021, subject to regulatory approvals, and other customary closing conditions. UBS Investment Bank served as lead financial advisor to Prolec GE in the transaction. Scotiabank Inverlat also served as financial advisor to Prolec GE.
Source: GE Grid Solutions