The automotive aftermarket unit of the Bosch Group is planning to buy SPX Corp.'s aftermarket services business in a cash deal that has a value of $1.15 billion. In a statement, Bosch said that it generates around $920 million in annual sales and has about 2,700 employees in 17 countries.
If regulators approve it in the usual time frame, it’s likely that this deal will close in the first half of 2012. Robert Hanser, president of the Bosch's Automotive Aftermarket division, said that getting SPX Service Solutions will help in making Bosch “one of the leading providers of diagnostic solutions.”
He said that this acquisition will enable it to significantly expand its market presence in the diagnostics business, especially in North America. Based in Charlotte, N.C., SPX said that this sale will enable it to concentrate on other aspects of the business like beverage and food processing as well as power transformers for utilities.
Kowalski, SPX segment president, said that Bosch is dedicated to the automotive service sector and has strong relationships with vehicle original equipment manufacturers throughout the world.
He added that Service Solutions has a “very good strategic fit” with Bosch. Based in Stuttgart, Germany, Bosch's automotive business is ranked at No. 1 on the Automotive News list of the top 100 global suppliers with worldwide sales of $34.56 billion in 2010.
When other business lines are included, Bosch said it generated revenue of $62.7 billion in its 2010 fiscal year and predicts to achieve about $70 billion in revenue for its current 2011 fiscal year. Based in Warren, Mich., the SPX business sells diagnostic equipment, service tools, parts and software for auto dealers and repair shops around the world.