Looks like a local company Graham Corporation-GHM might be an expensive (Sales to /market cap), but good fit for SPX. Just looking for now.
SPX Seeks Flow-Control Acquisitions With $1 Billion Cash Stash
By Thomas Black - Feb 16, 2012 1:06 PM ET
SPX Corp. (SPW) Chief Executive Officer Chris Kearney said he has about $1 billion of cash and is eager to make acquisitions in the flow-control industry.
SPX’s Flow Technology unit, which sells pumps and valves to the energy and food industries, will account for 53 percent of estimated sales from continuing operations this year, up from 14 percent in 2004, Kearney said in an interview today. The company completed the acquisition of ClydeUnion Pumps on Dec. 22 and is considering more deals, he said.
“The strategy around flow will continue to evolve in a positive direction, looking for other acquisitions to grow the flow business,” Kearney said following release of the company’s fourth-quarter earnings.
The strategy was validated by the flow unit’s 16 percent increase in fourth-quarter sales and 20 percent jump in profit, Kearney said. SPX, based in Charlotte, North Carolina, reported adjusted earnings per share from continuing operations of $1.78, higher than analysts’ average estimate of $1.75.
The company said it may also use its cash for more share repurchases.
SPX said in January it would sell its vehicle-servicing business to Robert Bosch GmbH (RBOS) for $1.15 billion. Kearney declined to say if he’s looking to shed businesses from the Industrial Products or Thermal Equipment units.
“There will be a lot of focus on looking for additional opportunities to grow the flow platform,” he said. “We’re not in any particular hurry to move anything else because we think we’ve got other very good businesses.”
bloomberg.com |
