Robert Bosch GmbH plans to buy the automotive services division of U.S.-based SPX Corp. for about $1.15 billion in cash.
Bosch and Charlotte, North Carolina-based SPX intend to complete the transaction in the first half of this year, the Karlsruhe-based manufacturer said today in a statement.
For Stuttgart, Germany-based Bosch, the SPX Service Solutions unit adds a division that took in about $920 million in sales last year.
The purchase price represents 12.7 times the business’s earnings before interest, taxes, depreciation and amortization. It is SPX’s biggest divestiture since it sold its Edward Systems Technology unit to GE Infrastructure for $1.4 billion in 2004, according to Capital IQ data.
SPX will record an after-tax book gain of about $450 million, or $8.65 a share, following the completion of the deal.
The U.S. manufacturer also said it plans to use at least $350 million for share repurchases and about $350 million to repay debt.
The privately held German company with 285,000 employees worldwide posted revenues of about euro 47.3 billion and a net profit of euro2.5 billion in 2010, the most recent figures available.