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CHARLOTTE, N.C. - SPX Technologies, Inc. (NYSE:SPXC), a global supplier of engineered products and technologies with a market capitalization of $6.08 billion and an "GREAT" financial health rating according to InvestingPro, announced Monday the completion of its acquisition of Toronto-based Sigma Heating and Cooling and Omega Heat Pump for approximately $144 million (CAD 200 million). The transaction is aimed at expanding SPX’s HVAC segment, particularly in the hydronics business, which includes brands such as Weil-McLain and Patterson-Kelley.
Sigma & Omega, founded in 1997, specializes in the manufacture of hydronic heating and cooling equipment. With a workforce of about 220 employees, the company is expected to generate annualized revenues of around $65 million in 2025. A significant portion of Sigma & Omega’s sales are currently to Canadian customers, but SPX plans to enhance its sales in the U.S. market, supported by an expansion of U.S.-based production.
Gene Lowe, President and CEO of SPX Technologies, expressed enthusiasm about the acquisition, noting the complementary nature of Sigma & Omega’s products to SPX’s existing HVAC offerings. He highlighted the potential for significant synergies and the strategic fit of Sigma & Omega’s product lines with SPX’s portfolio. Lowe also pointed out the opportunities to leverage existing channels, given that Sigma & Omega’s products are often paired with hydronics equipment and cooling towers.
The founders of Sigma & Omega, David Herzstein and Anthony Gaspari, commented on the acquisition, expressing confidence that joining SPX Technologies will create new opportunities for their employees, customers, and shareholders. They emphasized the partnership’s potential for continued growth in the North American market for high-rise residential buildings, hotels, schools, hospitals, and commercial properties.
SPX Technologies plans to update its full-year 2025 guidance to reflect the impact of the Sigma & Omega acquisition on May 1, 2025, when it reports its Q1 2025 results.
This report is based on a press release statement and includes forward-looking statements that are subject to risks and uncertainties. These include changes in global and North American economic conditions, competition, supply chain risks, and other factors that could cause actual results to differ materially from those anticipated.
In other recent news, SPX Technologies reported its fourth-quarter earnings for 2024, with adjusted earnings per share of $1.51, aligning with analyst estimates. The company’s revenue for the quarter was $533.7 million, slightly below the consensus of $534 million but representing a 13.7% increase year-over-year. For 2025, SPX Technologies forecasts adjusted earnings per share between $6.00 and $6.25, surpassing the analyst consensus of $6.11. The company also expects revenue between $2.13 billion and $2.19 billion, exceeding the $2.14 billion estimate.
The HVAC segment was a standout performer, with revenue rising 18.6% to $370.5 million and segment income margin expanding by 140 basis points to 24.8%. For the full year 2024, SPX Technologies reported adjusted earnings per share of $5.58, a 29% increase from $4.31 in 2023, while revenue grew 13.9% to $1.98 billion. These developments indicate strong growth prospects, with the company highlighting healthy demand in key markets and favorable execution trends.
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