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SPX buys United Dominion
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March 12, 2001: 7:25 a.m. ET
Auto parts supplier to acquire Canadian company in $954M stock deal
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NEW YORK (CNNfn) - SPX Corp., which supplies parts and services to vehicle manufacturers, agreed Monday to buy United Dominion Industries Ltd. for $954 million in stock plus the assumption of $876 million in debt, bring the total transaction value to $1.83 billion.
 Under the terms of the agreement, United Dominion (UDI: Research, Estimates) shareholders will receive 0.2353 of an SPX share for each United Dominion share, or $25 per United Dominion share based on the average closing price of SPX common stock for the five-day period ended March 9.
SPX has had its eye on United Dominion, based in Charlotte, N.C., for the some time, the Wall Street Journal noted. United Dominion put itself on the auction block last fall, prompting its stock to trade as high as $24.31 last September.
"Upon completion of the transaction, SPX will have annual revenue of more than $5 billion, four powerful business segments, strong cash flow, expanded global reach and even greater opportunities for growth and value creation," said John Blystone, chairman and CEO of SPX.
Muskegon, Mich.-based SPX expects the acquisition to be accretive to its earnings per share in the first full year and to produce significant incremental cash flow, based on achieving cost savings of at least $30 million in the first full year.
Shares of SPX (SPW: Research, Estimates) finished Friday's trading down $3.40 at $103.60, while United Dominion stock ended the session up 30 cents at $19.50. 
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