Bosch plans to buy SPX Corp, deal likely by mid-2012

The Bosch Group's automotive aftermarket unit plans to purchase SPX Corp.'s aftermarket services business in a deal valued at $1.15 billion. The SPX business, based in Warren, Michigan, US, sells diagnostic equipment, service tools, parts and software for automotive dealers and repair shops around the world, says an official statement.

It generates about $920 million in annual sales and employs 2,700 people in 17 countries including US, Germany, France and China. The deal is expected to close in the first half of 2012 if approved in the regular time frame by regulators.

SPX Service Solutions’ products also includes SPX offers technical information, training programmes, equipment for dealerships and repair shops, and services for automaker's service organizations. These products are also used in automakers' authorised dealerships and repair shops. This acquisition will make Bosch a comprehensive provider of solutions for such operations, it said in a statement.

The products and services of SPX Service Solutions are found in many different applications, such as passenger cars, heavy-duty trucks, light commercial vehicles, agricultural machinery, and off-highway applications. "Acquiring SPX Service Solutions will help make Bosch one of the leading providers of diagnostic solutions," Robert Hanser, president, Bosch's Automotive Aftermarket division, (pictured) said. "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,” he added, "Bosch is dedicated to the automotive service sector and has strong relationships with vehicle original equipment manufacturers worldwide. We believe Service Solutions is a very good strategic fit with Bosch," David Kowalski, SPX segment president, said. statement.

Bosch India’s sales are expected to cross the Rs 11,000 crore mark in India for calendar 2011. It has announced an investment of Rs 2,200 crore for 2012 and 2013 to expand its facilties here in India.