SPX Announces Acquisition of International Tower Lighting, LLC

Rhea-AI Summary

SPX Corporation (NYSE: SPXC) has successfully acquired International Tower Lighting, LLC (ITL) as of April 11, 2022. ITL specializes in designing and manufacturing Aids-to-Navigation systems, generating approximately $18 million in revenue. This acquisition is expected to modestly enhance SPX's average segment margin and will be included in the Detection & Measurement segment. SPX plans to update 2022 financial guidance following Q1 results, indicating a commitment to expand its global AtoN platform.

Positive

• Acquisition of ITL expands SPX's AtoN platform.
• ITL adds high-quality products and services, including a leading network operations center.
• Estimated revenue contribution of $18 million from ITL.
• Acquisition anticipated to be modestly accretive to segment margin.

Negative

• None.

Broadens and Strengthens SPX’s Aids-to-Navigation Platform

CHARLOTTE, N.C., April 11, 2022 (GLOBE NEWSWIRE) -- SPX Corporation (“SPX”) (NYSE: SPXC) today announced that it has completed the acquisition of International Tower Lighting, LLC (“ITL”), a private company headquartered in La Vergne, Tennessee. ITL is a leader in the design and manufacture of highly-engineered Aids-to-Navigation, or “AtoN” systems, including obstruction lighting for telecommunications towers, wind turbines and numerous other structures. ITL also hosts monitoring and support services for its customers.

ITL’s results will be reported as part of SPX’s AtoN platform within its Detection & Measurement segment. ITL has revenue of approximately $18 million, and is anticipated to be modestly accretive to average segment margin. SPX anticipates updating 2022 guidance to reflect ITL when reporting Q1 2022 results in early May.

“We are excited to welcome ITL to the SPX team,” said Gene Lowe, President and CEO of SPX. “ITL is our third acquisition in our AtoN platform, and broadens and strengthens SPX’s position in AtoN by adding widely recognized, high quality products and technology, including a leading network operations center, and value added monitoring and communications services. We see significant opportunities to continue to grow our AtoN platform worldwide; and, the acquisition of ITL is another important step in that journey.”

Roberto Schipp, President and co-founder of ITL, commented “We are very pleased to be part of SPX. Joining forces with SPX’s worldwide AtoN businesses is a natural next step in the growth of our company and provides significant resources to help take our business to the next level. We look forward to the many opportunities this transaction creates for our customers and employees.”

About SPX Corporation:  SPX Corporation 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 Corporation has approximately 3,100 employees in 15 countries. SPX Corporation is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com.

About International Tower Lighting, LLC: 

International Tower Lighting, LLC is a recognized industry leader in the design and manufacture of obstruction lighting systems and components. The company offers a full line of medium intensity LED and xenon strobe obstruction lighting systems as well as replacement parts for the majority of US-made xenon strobe systems. Headquartered La Vergne, Tennessee, ITL was founded by Roberto Schipp and Andy Rudolph in the late 1990s, and has grown steadily in size over the last 25 years. For more information, please visit www.itl-llc.com.

Forward-looking Statements. Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. In addition to our updated 2021 financial guidance, the words “believe,” “expect,” “anticipate,” “project” and similar expressions identify our other forward-looking statements. Please read these forward-looking statements in conjunction with our documents filed with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements, including the following: the impact of the COVID-19 pandemic and governmental and other actions taken in response; the uncertainty of claims resolution with respect to the large power projects in South Africa, as well as claims with respect to asbestos, environmental and other contingent liabilities; cyclical changes and specific industry events in our markets; changes in anticipated capital investment and maintenance expenditures by customers; availability, limitations or cost increases of raw materials and/or commodities that cannot be recovered in product pricing; the impact of competition on profit margins and our ability to maintain or increase market share; inadequate performance by third-party suppliers and subcontractors for outsourced products, components and services; cyber-security risks; risks with respect to the protection of intellectual property, including with respect to our digitalization initiatives; the impact of overruns, inflation and the incurrence of delays with respect to long-term fixed-price contracts; defects or errors in current or planned products; domestic economic, political, legal, accounting and business developments adversely affecting our business, including regulatory changes; changes in worldwide economic conditions; uncertainties with respect to our ability to identify acceptable acquisition targets; uncertainties surrounding timing and successful completion of any announced acquisition or disposition transactions (including the disposition of SPX Transformer Solutions, Inc.), including uncertainties with respect to obtaining (and the timing of) necessary regulatory approvals; uncertainties with respect to integrating acquisitions and achieving cost savings or other benefits from acquisitions; the impact of retained liabilities of disposed businesses; potential labor disputes; and extreme weather conditions and natural and other disasters.

Actual results may differ materially from these statements. Although SPX believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.

Statements in this press release speak only as of the date of this press release, and SPX disclaims any responsibility to update or revise such statements except as may be required by law.

Investor and Media Contact:

Paul Clegg, Vice President, Investor Relations and Communications
Phone: 980-474-3806
E-mail: spx.investor@spx.com

Source: SPX Corporation 

FAQ

What is the purpose of SPX's acquisition of International Tower Lighting (ITL)?

The acquisition aims to enhance SPX's AtoN platform by integrating ITL's high-quality products and services.

How much revenue does International Tower Lighting generate?

International Tower Lighting has an annual revenue of approximately $18 million.

When will SPX update its 2022 financial guidance related to the ITL acquisition?

SPX plans to update its 2022 financial guidance after reporting Q1 2022 results in early May.

What segment will ITL's results be reported under?

ITL's results will be included in SPX's Detection & Measurement segment as part of its AtoN platform.

What are the expected benefits of acquiring ITL for SPX?

The acquisition is expected to broaden SPX's product offerings and strengthen its market position in the AtoN sector.