Bosch Plans to Acquire SPX Service Solutions Business
Addition to diagnostics business
-- SPX Service Solutions: sales of approximately 920 million dollars expected in 2011. More than 2700 associates in 17 countries.
-- Acquisition of diagnosis and service specialist helps expansion of global market presence
-- Expansion of product portfolio makes Bosch comprehensive provider of solutions in the automotive aftermarket
24 Jan, 2012, 06:30 ET
KARLSRUHE, Germany and CHARLOTTE, N.C., Jan. 24, 2012 /PRNewswire/ -- The Bosch Automotive Aftermarket division plans to acquire the Service Solutions business of SPX Corporation, headquartered in Charlotte, NC (NYSE: SPW). 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 (USA), 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 Pacific and Europe, especially in our diagnostics business with automakers."
Comprehensive solutions for service organizations
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."
Note: 2011 sales figure converted using Fx rate 1 Euro = $1.3918 U.S. Purchase price converted using Fx rate 1 Euro = $1.3017 U.S.
The Automotive Aftermarket division (AA) provides the aftermarket and repair shops worldwide with a complete range of diagnostic and repair shop equipment and a wide range of spare parts – from new and exchange parts to repair solutions – for passenger cars and commercial vehicles. Its product portfolio includes products made as Bosch original equipment, as well as aftermarket products and services developed and manufactured in-house. More than 10,000 associates in 140 countries, as well as a global logistics network, ensure that some 450,000 different spare parts reach customers quickly and on time. In its "Diagnostics" operations, AA supplies testing and repair-shop technology, diagnostic software, service training, and information services. In addition, the division is responsible for the "Bosch Car Service" repairshop franchise, an independent chain of repair-shops, with some 15,000 franchises. In addition, AA is responsible for more than 500 "AutoCrew" partners.
Additional information can be accessed at www.bosch-automotive.com. The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 285,000 associates generated sales of 47.3 billion euros ($62.7 billion) in fiscal 2010. For 2011, the company forecasts sales of more than 50 billion euros ($70 billion) and a headcount of 300,000 by the end of the year. The Bosch Group comprises Robert Bosch GmbH and its more than 350 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Bosch spent 3.8 billion euros (approximately $5 billion) for research and development in 2010, and applied for over 3,800 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial.
Additional information is available online at www.bosch.com, and www.bosch-presse.de.
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