This includes £700 million in cash at deal completion and £50 million subject to an earnout agreement dependant on future performance.
With projected 2011 revenues of £400 million, ClydeUnion Pumps operates eight manufacturing facilities and 25 service centres worldwide with approximately 2000 employees.
ClydeUnion Pumps was formed by Clyde Blowers Capital chairman and chief executive Jim McColl out of two major acquisitions – the £48 million purchase of the former Weir Pumps business in Cathcart, Glasgow, Scotland from the Weir Group in 2007 and the acquisition of Union Pumps from Textron Inc in 2008. McColl, who started his career at the former Weir Pumps business as a 16 year old apprentice, will play no part in ClydeUnion Pumps after the sale.
Under SPX ownership, ClydeUnion Pumps will continue to be run as a standalone business with its head office in Glasgow, under the current management team. Clyde Union Pumps will be part of SPX’s Flow Technology business, which already includes pump manufacturers Bran+Luebbe, Plenty Mirrlees and Waukesha Cherry Burrell.
“A very important part of our discussions has centred around us being convinced that SPX would be a good responsible owner of this business and would continue to support its growth. As a very large corporation, we firmly believe SPX can provide that investment and be a safe custodian of our business going forward,” said McColl.
“I would not have sold Clyde Union to anyone who wouldn’t take the company to the next level. There had to be a long-term commitment," added McColl..
Don Canterna, president of SPX Flow Technology, said: “We see tremendous value in ClydeUnion’s products, brands, factories, and most importantly, its people. Americans know and respect Glasgow and Scotland’s place in engineering heritage.”