The Bosch Automotive Aftermarket division has announced plans to acquire the Service Solutions business of SPX Corp., headquartered in Charlotte, NC, for approximately $1.15 billion. The two companies signed an agreement to this effect Jan. 23 in New York City.
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, MI, is expected to generate sales of approximately $92 million. It employs some 2,700 associates in 17 countries, primarily in the U.S., Germany, France and China.
According to Bosch, this deal is the largest planned acquisition in the history of the company’s automotive aftermarket division.
“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.”
The SPX Service Solutions product portfolio includes vehicle repair solutions, including diagnostic tools and software, as well as special repair service tools. In addition, SPX offers technical information, training programs, equipment for dealerships and repair shops and services for automaker’s service organizations. The company’s products are also used in automakers’ authorized dealerships and repair shops. This acquisition will make Bosch a comprehensive provider of solutions for such operations.
Commenting on the acquisition, 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.”
Bosch’s Automotive Aftermarket (AA) division provides the aftermarket and repair shops worldwide with a complete range of diagnostic and repair shop equipment and a wide range of spare parts from new and exchange parts to repair solutions for passenger cars and commercial vehicles. Its product portfolio includes products made as Bosch original equipment, as well as aftermarket products and services developed and manufactured in-house. More than 10,000 associates in 140 countries, as well as a global logistics network, ensure that some 450,000 different spare parts reach customers quickly and on time.
In its Diagnostics operations, AA supplies testing and repair-shop technology, diagnostic software, service training and information services. In addition, the division is responsible for the Bosch Car Service repair shop franchise, an independent chain of repair shops, with some 15,000 franchises. In addition, AA is responsible for more than 500 AutoCrew partners.
The transaction is subject to normal closing conditions and regulatory approvals and is expected to close during the first half of 2012.