SPX Technologies Acquires HVAC Components Maker Neptronic For C$605M (~$430M) In Cash

The multiple of enterprise value to earnings before interest, tax, depreciation and amortization ("EBITDA multiple") implied in the transaction is modestly above the upper-end of the Company’s recently transacted range of 8-12x.

Neptronic designs and manufactures highly engineered HVAC solutions including intelligent controls, electric duct heaters, humidifiers, actuators and valves. Neptronic serves customers through a strong network of OEMs and channel partners, focused on mission-critical applications including data centers, healthcare and education. Based in Montreal, Canada, Neptronic has about 300 employees and generates annual revenues of approximately US$ 75 million.

Neptronic will become part of SPX Technologies’ HVAC segment, expanding the Company’s position in precision thermal management solutions and expanding its offering with high-quality brands and products that it can leverage across its platform and geographic footprint. The addition of Neptronic strengthens SPX’s portfolio with differentiated controls, electric duct heaters, actuators, actuated valves, and humidifiers - strategic product categories with strong market fundamentals and a natural fit within the Company’s existing sales channels. Neptronic’s technology platform further advances SPX’s evolution toward delivering intelligent, controls-enabled HVAC solutions for customers globally.

SPX intends to accelerate Neptronic’s growth by expanding channel access and customer reach and by providing the capital and operational resources to scale the business while preserving its innovation-led culture and speed to market. Neptronic’s solutions are also expected to be leveraged across the broader SPX HVAC portfolio, enabling more intelligent, fully integrated HVAC solutions.