Prolec GE to Acquire SPX’s Transformer Solutions Business
GE-Prolec Transformers Inc, a subsidiary of a 50/50 joint venture between GE and Xignux, a Mexico-based private company, announced it has signed a definitive agreement with SPX Corporation to acquire its SPX Transformer Solutions business for a cash purchase price of USD 645 million subject to customary net working capital and similar adjustments at closing. SPX Transformer Solutions is known for its Waukesha transformers, services and components. The acquisition is expected to enhance Prolec GE’s position as a key distribution and power transformer player providing customers with a wider choice of products and an enhanced next-generation portfolio.
Prolec GE offers a wide range of transformers solutions from 5 kVA up to 1,000 MVA for all generation, transmission, and distribution applications. It has three manufacturing facilities located in Mexico, United States, and Brazil to serve the entire American continent.
SPX Transformer Solutions offers power transformers from 5 to 1,200 MVA in the United States and provides transformer services solutions and components offering. SPX Transformer Solutions operates manufacturing facilities at its headquarters in Waukesha, Wisconsin, as well as Goldsboro, North Carolina, and Dallas, Texas, which will all become part of Prolec GE upon the close of the transaction.
The agreement is expected to close by the end of 2021, subject to regulatory approvals, and other customary closing conditions.
UBS Investment Bank served as lead financial advisor to Prolec GE in the transaction. Scotiabank Inverlat also served as financial advisor to Prolec GE.