SPX Corporation has signed a definitive agreement to sell its Bomag compaction equipment business to Fayat for approximately $446 million in cash.
SPX will use the net proceeds from the sale of Bomag, which is expected to have 2004 revenues of approximately $490 million, to pay off debt. The transaction, which is subject to antitrust clearance and customary closing conditions, is expected to close in the fourth quarter of 2004.
“We conducted a thorough review of Bomag and its long term fit within our Industrial Products segment and SPX’s overall strategy,” commented John B. Blystone, Chairman, President and Chief Executive Officer of Charlotte, NC-based SPX.
“As a result of this review, we decided to monetise the asset and have found an excellent strategic owner for the business,” continued Blystone. “We’re pleased that the proceeds from this transaction will enable SPX to further strengthen our balance sheet.”
Bomag, based in Boppard, Germany, is an international manufacturer of heavy and light equipment for soil, asphalt and refuse compaction. In addition Bomag sells compaction measurement and documentation systems and is active in the spare parts and service business as well as in the business of machinery for the recycling and stabilisation of road beds under repair.
Fayat Group, a privately owned business, is comprised of 75 companies and employs 7,700 people. Based in Bordeaux, France, approximately 20% of Fayat’s business includes road-building equipment.