GE-Prolec Transformers, Inc., (together with its affiliates, “Prolec GE”), a subsidiary of a 50/50 joint venture between GE (GE) and Xignux, a Mexico-based private company, announced it has signed a definitive agreement with SPX Corporation (SPXC) to acquire its SPX Transformer Solutions business (SPXT) for a cash purchase price of $645 million 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.”
Prolec GE offers a wide range of transformers solutions from 5 kVA up to 1,000 MVA for all generation, transmission, and distribution applications. It has three manufacturing facilities located in Mexico, United States, and Brazil to serve the entire American continent.
SPX Transformer Solutions offers power transformers from 5 to 1,200 MVA in the United States and provides transformer services solutions and components offering. SPX Transformer Solutions operates manufacturing facilities at its headquarters in Waukesha, Wisconsin, as well as Goldsboro, North Carolina, and Dallas, Texas, which will all become part of Prolec GE upon the close of the transaction.
Ricardo Suarez added, “This will be a perfect fit and a natural next step in our transformation into a stronger player in end-to-end electric power transmission, and distribution solutions. Prolec GE’s global sales channels and specialization in small and larger-sized transformers are highly complementary with SPX Transformer Solutions’ expertise in mid-sized transformer technology, and its U.S. market presence.”
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.