Bosch acquires SPX Service Solutions
Following approval by the antitrust authorities, Bosch completed its acquisition of SPX Service Solutions, a US automotive diagnostics specialist at the beginning of December 2012. The agreement to purchase the company was signed the preceding January. SPX Service Solutions develops, manufactures, and sells service equipment, repair-shop accessories, and software for the global automotive market. Based in Canton, MI (USA), SPX Service Solutions generated sales of some US$920 million (some 660 million euros) in 2011. The diagnostics specialist employs 2,800 associates in 17 countries, and has manufacturing sites in the US, Germany, France, and China. The purchase price was $1.15 billion (885 million euros).
“In acquiring SPX Service Solutions, we will become a comprehensive supplier of solutions in the diagnostics and repair business. In expanding our portfolio and extending our global presence, especially in the US, we are strengthening our position,” said Robert Hanser, president of the Bosch Automotive Aftermarket division. “We will quickly merge our know-how and wealth of experience in this growing market. Our aim is to become the world’s leading supplier of diagnostics solutions for all makes of vehicles.”
Network of core competencies for a growing market
With automotive electronics becoming increasingly complex, the market for diagnostics solutions has a great deal of potential for growth. Up to now, Bosch has served this market with products and services for diagnosing, servicing, and repairing passenger cars and commercial vehicles, with brand-independent workshops as its main customers. The portfolio of SPX Service Solutions comprises engineering services for automakers, as well as accessories and services for workshops. Combining these areas is intended to provide Bosch with a wider range of customers and a broader portfolio. At the same time the move is designed to open up new market opportunities, especially in Asia Pacific and Europe.
The business activities of SPX Service Solutions will be integrated into the Bosch Automotive Aftermarket division, a leading supplier of aftermarket-specific products and services which generated sales of some 4.3 billion euros in 2011. As part of an integration project, the new “Automotive Service Solutions” business unit will be set up. The former Diagnostics business unit will also become part of this. All in all, these two business units generated sales of roughly one billion euros in 2011. Tanvir Arfi, who was president of SPX Service Solutions for many years, will be in charge of Automotive Service Solutions and its 4,200 associates. The unit’s world headquarters will be in Canton, MI (USA). The European operations of Automotive Service Solutions will be managed from the Plochingen location in Germany.