The Bosch Automotive Aftermarket division has signed an agreement to acquire the Service Solutions business of SPX Corp. for a purchase price of $1.15 billion. The planned acquisition would be the largest in the history of the Automotive Aftermarket division.
SPX Service Solutions develops, manufactures and sells diagnostic and service tools, workshop equipment, and software for the global automotive aftermarket. For 2011, the business, which is based in Warren, Mich., is expected to generate sales of approximately $920 million. It employs some 2,700 associates in 17 countries, primarily in the U.S., Germany, France and China.
The transaction is subject to normal closing conditions and regulatory approvals, and is expected to close 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."
David Kowalski, SPX segment president, said, "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."