SPX Technologies (SPXC) Completes Acquisition of ASPEQ, Provides Guidance Update

SPX Technologies, Inc. (NYSE: SPXC) (“the Company”, “we”, or, “our”) announced that it has completed the acquisition of ASPEQ Heating Group (“ASPEQ”) including certain tax attributes for $418 million in cash, subject to closing adjustments. ASPEQ, a leading provider of electrical heating solutions to customers in industrial and commercial markets, is now a part of SPX Technologies’ HVAC Heating platform.

To reflect this transaction the Company has increased its 2023 full-year guidance for adjusted earnings per share* of $3.90 to $4.05 from a prior range of $3.80 to $3.95. The increase in guidance reflects a partial year of ownership of ASPEQ and the impact of financing costs associated with the transaction. At the midpoint, updated adjusted EPS* guidance represents a year-on-year increase of approximately 28%. Management expects ASPEQ to have annual revenue of approximately $120 million, and higher-than-company-average sales growth and margins.

“We are excited to welcome the ASPEQ team to the SPX Technologies family,” said Gene Lowe, President and CEO of SPX Technologies. “This transaction more than doubles SPX Technologies’ position in electrical heating and expands our value-creation opportunities in highly complementary and attractive industrial and commercial end markets. We see significant long-term growth potential for our combined businesses, as well as nearer-term benefits from favorable secular trends such as electrification, decarbonization, and reshoring.”

Dave Smith, ASPEQ’s President and CEO, said, “We are delighted to be joining SPX Technologies’ electrical heating team. Bringing together SPX Technologies’ marketing and channel infrastructure and business system with ASPEQ’s technology, and strong product development and application expertise creates numerous opportunities for employees, customers, and shareholders. I personally look forward to working with the SPX Technologies team to build an even stronger, more valuable platform.”

2023 Guidance Update:

SPX Technologies is updating full-year 2023 guidance to reflect the acquisition of ASPEQ. The Company is now targeting consolidated revenue of approximately $1.68 to $1.72 billion ($1.61 to $1.65 billion prior), an adjusted operating income margin* of approximately 15.00% to 15.75% (14.50% to 15.25% prior), and adjusted earnings per share* in a range of $3.90 to $4.05 ($3.80 to $3.95 prior).

Segment and company performance is expected to be as follows:

* Adjusted results including consolidated segment income margins are non-GAAP financial measures. Reconciliations of guidance measures to US GAAP financial measures are not predictable and accordingly are not provided in this release.

Conference Call: SPX Technologies will host a conference call at 4:30 p.m. (EDT) today, June 5th, 2023. to discuss the closing of the ASPEQ acquisition and updated guidance. The call will be simultaneously webcast via the Company's website at www.spx.com and the slide presentation will be available in the Investor Relations section of the site.

Call Access: To access the call by phone, please go to this link https://register.vevent.com/register/BI188c148618314cfd9e20cfed4316bfce and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at www.spx.com.

About SPX Technologies: SPX Technologies is a supplier of highly engineered products and technologies, holding leadership positions in the HVAC and detection and measurement markets. Based in Charlotte, North Carolina, SPX Technologies has more than 3,300 employees in 15 countries. SPX Technologies is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com.

About ASPEQ: Headquartered in St. Louis, Missouri, ASPEQ is a leading provider of custom-configured electric heating and thermal management products to the industrial, commercial, military, marine, and transportation markets. Products are marketed under well-known brands, such as INDEECO, Heatrex, AccuTherm, Brasch, Spectrum, BannerDay PipeHeating, and Solar Products. For more information, please visit www.aspeqheating.com.

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