The transaction is expected to boost Prolec GE’s position in the power transformer market in the Americas
SPX Transformer Solutions offers power transformers from 5MVA to 1,200MVA. (Credit: SPX Transformer Solutions Inc.)
Mexican transformer manufacturer GE-Prolec Transformers (Prolec GE) has agreed to acquire SPX Transformer Solutions from US-based SPX for $645m in an all-cash deal.
Prolec GE is a subsidiary of a 50:50 joint venture between GE and Mexican private company Xignux.
The acquisition is expected to help the company boost its position as a major distribution and power transformer player in the Americas. The combined company will offer a broader selection of products and an improved next-generation portfolio, said GE.
Prolec GE CEO Ricardo Suarez said: “Prolec GE’s vision is to be recognized as the most reliable and strategic partner to our customers for innovative and sustainable energy solutions.
“The combined entity will remain a strong partner to its customers and will be better suited to continue delivering quality products and supporting the evolution of the grid in the United States and the rest of the Americas.”
Headquartered in Wisconsin, SPX Transformer Solutions provides power transformers from 5MVA to 1,200MVA in the US. The company also offers transformer service solutions and also components.
On the other hand, Prolec GE offers transformers solutions from 5kVA up to 1,000MVA for all generation, transmission, and distribution applications. The company has three manufacturing facilities in Mexico, the US, and Brazil.
SPX president and CEO Gene Lowe said: “I am very proud of the accomplishments of the SPX Transformer Solutions team which has substantially increased the operational performance of the business and continued to drive improvements to deliver value for customers.
“As a key provider of high-quality, sustainable solutions for the delivery of electrical energy, Prolec GE is an excellent fit to lead the next phase of growth and value for SPX Transformer Solutions’ customers and employees alike.”
The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close by the end of this year.