SPX Technologies Announces Acquisition of Sigma & Omega
SPX Technologies (NYSE:SPXC) has completed the acquisition of Toronto-based Sigma & Omega for $144 million (CAD 200 million). Founded in 1997, Sigma & Omega manufactures hydronic heating and cooling equipment, including vertical stack heat pumps, fan coils, and commercial self-contained units.
The acquired company, with 220 employees, is projected to generate $65 million in annual revenue for 2025. Sigma & Omega will operate within SPX's HVAC segment as part of its hydronics business. While currently focused on Canadian customers, SPX plans to expand U.S.-based production to increase American market penetration.
The acquisition multiple aligns with SPX's typical range of 8x-12x Adjusted EBITDA. SPX will update its full-year 2025 guidance to include Sigma & Omega's impact during Q1 2025 results announcement on May 1, 2025.
SPX Technologies (NYSE:SPXC) ha completato l'acquisizione della società con sede a Toronto Sigma & Omega per 144 milioni di dollari (200 milioni di CAD). Fondata nel 1997, Sigma & Omega produce apparecchiature per il riscaldamento e il raffreddamento idronico, inclusi pompe di calore a colonna verticale, fan coil e unità commerciali autonome.
L'azienda acquisita, con 220 dipendenti, prevede di generare 65 milioni di dollari di ricavi annui nel 2025. Sigma & Omega opererà all'interno del segmento HVAC di SPX, come parte del business idronico. Attualmente focalizzata sui clienti canadesi, SPX intende espandere la produzione negli Stati Uniti per aumentare la penetrazione nel mercato americano.
Il multiplo di acquisizione è in linea con il range tipico di SPX, compreso tra 8x e 12x l'EBITDA rettificato. SPX aggiornerà le previsioni per l'intero anno 2025 includendo l'impatto di Sigma & Omega durante la comunicazione dei risultati del primo trimestre 2025, il 1° maggio 2025.
SPX Technologies (NYSE:SPXC) ha completado la adquisición de la empresa con sede en Toronto Sigma & Omega por 144 millones de dólares (200 millones de CAD). Fundada en 1997, Sigma & Omega fabrica equipos de calefacción y refrigeración hidrónicos, incluyendo bombas de calor de columna vertical, fan coils y unidades comerciales autónomas.
La empresa adquirida, con 220 empleados, se proyecta que generará 65 millones de dólares en ingresos anuales para 2025. Sigma & Omega operará dentro del segmento HVAC de SPX como parte de su negocio de hidrónicos. Aunque actualmente está enfocada en clientes canadienses, SPX planea expandir la producción en Estados Unidos para aumentar la penetración en el mercado americano.
El múltiplo de adquisición está alineado con el rango típico de SPX, entre 8x y 12x el EBITDA ajustado. SPX actualizará su guía para todo el año 2025 para incluir el impacto de Sigma & Omega durante el anuncio de resultados del primer trimestre de 2025, el 1 de mayo de 2025.
SPX Technologies (NYSE:SPXC)는 토론토에 본사를 둔 Sigma & Omega를 1억 4,400만 달러(2억 캐나다 달러)에 인수 완료했습니다. 1997년에 설립된 Sigma & Omega는 수열 난방 및 냉방 장비를 제조하며, 수직형 스택 히트펌프, 팬 코일, 상업용 독립형 유닛을 포함합니다.
인수된 회사는 직원 220명을 보유하고 있으며, 2025년 연간 매출액 6,500만 달러를 예상합니다. Sigma & Omega는 SPX의 HVAC 부문 내 수열 사업부로 운영될 예정입니다. 현재 캐나다 고객에 집중하고 있으나, SPX는 미국 내 생산을 확대하여 미국 시장 진출을 강화할 계획입니다.
인수 배수는 SPX의 일반적인 8배에서 12배 조정 EBITDA 범위에 부합합니다. SPX는 2025년 1분기 실적 발표일인 2025년 5월 1일에 Sigma & Omega의 영향을 반영하여 2025년 전체 가이던스를 업데이트할 예정입니다.
SPX Technologies (NYSE:SPXC) a finalisé l'acquisition de la société basée à Toronto Sigma & Omega pour 144 millions de dollars (200 millions de CAD). Fondée en 1997, Sigma & Omega fabrique des équipements de chauffage et de refroidissement hydroniques, notamment des pompes à chaleur à colonne verticale, des ventilo-convecteurs et des unités commerciales autonomes.
L'entreprise acquise, qui compte 220 employés, devrait générer 65 millions de dollars de chiffre d'affaires annuel pour 2025. Sigma & Omega opérera au sein du segment HVAC de SPX dans le cadre de son activité hydronique. Bien que l'entreprise soit actuellement centrée sur les clients canadiens, SPX prévoit d'étendre la production aux États-Unis pour accroître sa pénétration sur le marché américain.
Le multiple d'acquisition est conforme à la fourchette habituelle de SPX, comprise entre 8x et 12x l'EBITDA ajusté. SPX mettra à jour ses prévisions pour l'ensemble de l'année 2025 afin d'inclure l'impact de Sigma & Omega lors de l'annonce des résultats du premier trimestre 2025, prévue le 1er mai 2025.
SPX Technologies (NYSE:SPXC) hat die Übernahme des in Toronto ansässigen Unternehmens Sigma & Omega für 144 Millionen US-Dollar (200 Millionen CAD) abgeschlossen. Sigma & Omega wurde 1997 gegründet und stellt hydronische Heiz- und Kühlsysteme her, darunter vertikale Stapel-Wärmepumpen, Fan Coils und kommerzielle eigenständige Einheiten.
Das erworbene Unternehmen mit 220 Mitarbeitern wird voraussichtlich 65 Millionen US-Dollar Jahresumsatz für 2025 erzielen. Sigma & Omega wird innerhalb des HVAC-Segments von SPX als Teil des Hydronik-Geschäfts tätig sein. Während der Fokus derzeit auf kanadischen Kunden liegt, plant SPX, die Produktion in den USA auszubauen, um die Marktdurchdringung in Amerika zu erhöhen.
Das Akquisitions-Multiple liegt im typischen Bereich von SPX zwischen dem 8- und 12-fachen des bereinigten EBITDA. SPX wird seine Prognose für das Gesamtjahr 2025 aktualisieren, um die Auswirkungen von Sigma & Omega bei der Bekanntgabe der Ergebnisse für das erste Quartal 2025 am 1. Mai 2025 zu berücksichtigen.
- Strategic acquisition expanding product portfolio in HVAC solutions
- Expected $65 million revenue contribution in 2025
- Significant potential for U.S. market expansion
- Proprietary configuration software enhancing production efficiency
- Complementary product integration with existing hydronics equipment
- Substantial capital outlay of $144 million for acquisition
- Heavy reliance on Canadian market requiring significant U.S. expansion efforts
Insights
SPX Technologies' $144 million acquisition of Sigma & Omega represents a strategic expansion that strengthens their competitive position in the HVAC market. At 2.3% of SPX's $6.2 billion market cap, this transaction is financially material without straining resources.
The deal metrics appear favorable - the purchase price falls within SPX's typical 8x-12x EBITDA multiple range, suggesting disciplined capital allocation. With Sigma & Omega contributing projected annual revenues of $65 million (roughly 3-4% of SPX's annual revenue), the immediate financial impact is modest but meaningful.
The strategic rationale is compelling. This acquisition delivers product line diversification by adding vertical stack heat pumps, fan coils, and self-contained units to SPX's portfolio. The cross-selling potential with SPX's existing hydronics and cooling tower businesses creates natural revenue synergies, while the proprietary configuration software could drive margin improvements through production efficiencies.
Geographic expansion represents another value driver. By leveraging a primarily Canadian customer base and planning U.S. production expansion, SPX can accelerate North American market penetration. The focus on institutional markets (hotels, schools, hospitals) also provides exposure to segments with stable demand characteristics and recurring replacement cycles.
The transaction structure suggests a straightforward acquisition without complicated earn-outs or contingencies, which simplifies integration planning and execution risk.
This acquisition gives SPX Technologies substantial manufacturing capabilities enhancement through vertical integration of complementary HVAC components. The addition of Sigma & Omega's specialized production capacity for vertical stack heat pumps, fan coils, and commercial self-contained units fills a critical gap in SPX's manufacturing ecosystem.
The operational synergy potential is significant. SPX can now offer complete HVAC system solutions by combining their existing hydronics equipment (Weil-McLain and Patterson-Kelley brands) with Sigma & Omega's heat transfer technologies. This creates an integrated supply chain with improved coordination between previously separate component manufacturing.
Particularly valuable is Sigma & Omega's proprietary configuration software, which enhances production efficiency - a crucial competitive advantage in the custom HVAC equipment space where engineering complexity often creates manufacturing bottlenecks. This technology asset could be deployed across SPX's broader operations.
The planned expansion of U.S.-based production represents both an opportunity and execution challenge. While establishing domestic manufacturing reduces logistics costs and improves service levels for U.S. customers, it requires significant operational planning. SPX will need to effectively transfer manufacturing knowledge from the Toronto operations while maintaining production continuity.
With 220 employees, Sigma & Omega brings substantial human capital and institutional knowledge. Retention of key engineering and production personnel will be critical during integration. The positive comments from Sigma & Omega's founders suggest a cultural alignment that should facilitate operational integration and knowledge transfer, reducing execution risk in combining these manufacturing operations.
Expands HVAC Solutions to Include Vertical Heat Pumps and Self Contained Units; Highly Complementary Products and Channels
CHARLOTTE, N.C., April 15, 2025 (GLOBE NEWSWIRE) -- SPX Technologies, Inc. (NYSE:SPXC) (“SPX Technologies” or the “Company”) announced today that it has completed the acquisition of Sigma Heating and Cooling and Omega Heat Pump (“Sigma & Omega”). The purchase price of approximately
Founded in 1997, Sigma & Omega is a Toronto-based manufacturer of highly engineered hydronic heating and cooling equipment, including vertical stack heat pumps and fan coils, institutional heating products, and both air-cooled and water-cooled commercial self-contained units. With approximately 220 employees, Sigma & Omega is anticipated to have annualized revenues of approximately
Sigma & Omega will operate as part of SPX’s hydronics business, along with Weil-McLain and Patterson-Kelley, within our HVAC segment. A substantial majority of Sigma & Omega’s sales come from domestic Canadian customers. SPX plans to significantly increase Sigma & Omega’s sales to U.S. customers, supported by the expansion of U.S.-based production. Management plans to update full-year 2025 guidance to include the impact of Sigma & Omega on May 1, 2025, when SPX Technologies reports Q1 2025 results.
“We are excited to welcome the Sigma & Omega team to the SPX Technologies family,” said Gene Lowe, President and CEO of SPX Technologies. “This acquisition is highly complementary and creates significant potential synergies with our existing HVAC businesses. Sigma & Omega’s differentiated product offering fits perfectly with our existing portfolio of solutions, enhances the value we provide to our customers, and is consistent with our reputation for quality and innovation. Sigma & Omega’s vertical stack water sourced heat pumps and fan coils, and commercial self-contained units are frequently paired with hydronics equipment and cooling towers, creating numerous opportunities to leverage our existing channels.”
Mr. Lowe continued, “Sigma & Omega’s custom and configurable engineered solutions strategically position us for continued growth in attractive end markets, such as high-rise residential buildings, hotels, schools, hospitals, and commercial properties across North America. Additionally, their proprietary configuration software offers significant value to customers and enhances production efficiency – critical advantages as we grow.”
David Herzstein and Anthony Gaspari, the founders of Sigma & Omega commented, “We are delighted for Sigma & Omega to be joining SPX Technologies’ HVAC team. Combining SPX Technologies’ expertise and resources with Sigma & Omega’s strong technology and long-standing reputation for flexible high-quality solutions is a natural progression in our growth journey. This partnership creates new opportunities for employees, customers, and shareholders. We look forward to helping the SPX Technologies team build an even stronger, more valuable platform.”
About Sigma & Omega: Founded in 1997, Sigma & Omega is a Toronto-based manufacturer of highly engineered hydronic heating and cooling equipment, including vertical stack heat pumps and fan coils, institutional heating products, and commercial self-contained cooling units. The company is headquartered in Toronto, Ontario and has approximately 220 employees. For more information, please visit www.sigmaproducts.com and www.omega-heatpump.com.
About SPX Technologies, Inc: 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 has approximately 4,400 employees in 16 countries. SPX Technologies is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com.
* Non-GAAP financial measure. A reconciliation of this forward-looking non-GAAP measure to the corresponding measure under U.S. generally accepted accounting principles (“GAAP”) is not practicable and, accordingly, is not included. The Adjusted EBITDA attributable to the future contribution of Sigma & Omega to SPX Technologies’ results is determined in a manner consistent with the historical presentation of Adjusted EBITDA of SPX Technologies included in SPX Technologies’ press release dated February 25, 2025 announcing its fourth quarter and full-year 2024 financial results.
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. Please read these results in conjunction with the Company’s documents filed with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K. 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: cyclical changes and specific industry events in the Company’s markets; changes in anticipated capital investment and maintenance expenditures by customers; changes in economic conditions in relevant global and North American markets, including as a result of the imposition, or threat of imposition, of tariffs and other trade barriers or geopolitical conflicts; uncertainties with respect to the effect of the imposition, or threat of imposition, of government tariffs, including the significant tariffs announced by the U.S. government in 2025, including the broad tariffs announced in April 2025, and retaliatory tariffs announced in response thereto, such as those announced by the Chinese and Canadian governments; 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 the Company’s ability to maintain or increase market share; inadequate performance by third-party suppliers and subcontractors for outsourced products, components and services and other supply-chain risks; the uncertainty of claims resolutions with respect to environmental and other contingent liabilities; the impact of climate change and any legal or regulatory actions taken in response there to; cyber-security risks; risks with respect to the protection of intellectual property, including with respect to the Company’s 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; the impact of pandemics and governmental and other actions taken in response; domestic economic, political, legal, accounting and business developments adversely affecting the Company’s business, including regulatory changes; uncertainties with respect to the Company’s ability to identify acceptable acquisition targets; uncertainties surrounding timing and successful completion of acquisition or disposition transactions, including with respect to integrating acquisitions and achieving cost savings, synergistic sales or other benefits from acquisitions, including from the acquisition of Sigma & Omega; 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. The words “guidance,” “believe,” “targeting,” “expect,” “anticipate,” “project” and similar expressions identify forward-looking statements. Although the company 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 required by law.
Investor and Media Contacts:
Paul Clegg, Vice President, Investor Relations and Communications
Phone: 980-474-3806
E-mail: spx.investor@spx.com
Source: SPX Technologies
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