SPX Technologies Announces Acquisition of Sigma & Omega
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 $144 million (CAD 200 million) reflects an acquisition multiple consistent with SPX's typical range of 8x-12x Adjusted EBITDA*.
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 $65 million in 2025.
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
