SPX Completes Sale of BOMAG

French firm acquires equipment company for $446 million.

Published January 04, 2005

SPX Corp. has completed the sale of its BOMAG compaction equipment business to Fayat for $446 million in cash. SPX will use the net proceeds from the transaction to pay down debt.

 

Christopher Kearney, president and CEO of SPX, said, "As we previously announced, we intend to use the net proceeds from the sale of BOMAG to pay down debt which will strengthen the balance sheet and clear the path for our new financial strategy. In December, we committed to announce our financial strategy during the first quarter and we are on schedule to meet that deadline."

 

On October 28, SPX signed a definitive agreement to sell BOMAG to Fayat Group, a privately owned business based in Bordeaux, France.

 

BOMAG, based in Boppard, Germany, is a leading international manufacturer of heavy and light equipment for soil, asphalt and refuse compaction; in addition BOMAG sells compaction measurement and documentation systems and is active in the spare parts and service business as well as in the business of machinery for the recycling and stabilization of road beds under repair.
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