Bosch to buy SPX Service Solutions in US$1 billion deal
Bosch’s Automotive Aftermarket division has agreed to buy the Service Solutions business of SPX Corporation, headquartered in Charlotte, North Carolina. The deal, valued by the company at 1.15 billion dollars (roughly 883 million euros), was signed in New York City on 23 January 2012. SPX Service Solutions develops, manufactures and sells diagnostic and service tools, workshop equipment, and software for the global automotive aftermarket. The deal follows Bosch's earlier takeover of Taiwan-based Unipoint, which supplies starters and alternators, and a series of management personnel appointments in the UK.
In 2011, the business, which is based in Warren, Michigan (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 US, Germany, France, and China. This reportedly 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 complete during the first half of 2012.
“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.”
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.
According to the well-known aftermarket and servicing parts supplier, this acquisition makes 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 commented: “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.”
Bosch’s Automotive Aftermarket division (AA) supplies aftermarket and repair shops worldwide with a range of diagnostic and garage equipment plus 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. The business employs 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.