International law firm Eversheds has advised SPX Corporation, a global manufacturing and industrial equipment supplier, on its £700m acquisition of CLYDEUNION Pumps.

US-based SPX has entered into a definitive agreement with Clyde Blowers Capital, SCF-VI Offshore L.P., Appleby Nominees (Jersey) Limited, and members of CLYDEUNION management to purchase the global pumping solutions provider for £700m, including a potential earn out of up to £50m.

CLYDEUNION Pumps operates eight manufacturing facilities and 25 service centers worldwide including China, India and Brazil. This acquisition strengthens SPX’s global market position, creating a second platform for the company’s Flow Technology segment. 

The multi-disciplined Eversheds team was led by corporate partner Nick Emmerson and supported by experienced lawyers across the firm’s Company Commercial, Real Estate and HR practice areas. The team also worked closely with colleagues in Eversheds’ China, Singapore, France and Dubai offices to provide a seamless international service. 

Christopher J. Kearney, SPX’s Chairman, President and Chief Executive Officer, said:

“With its high quality pumps, well-recognized brand and global capabilities, CLYDEUNION is well-positioned to benefit from increases in global energy demand driven by the industrialization of emerging regions throughout the world. This acquisition expands our position in global power and energy and is consistent with our long-term strategy. We believe CLYDEUNION is an excellent strategic addition to our Flow Technology segment.”

Nick Emmerson said:

“CLYDEUNION has a strong reputation for engineering excellence and its global footprint has helped to establish a market leading brand in pump solution technology. This acquisition will reinforce SPX’s position as a global leader in manufacturing and industrial equipment and will bolster the power and energy platform for the Flow Technology segment of the company.” 

Robin Johnson, Partner and Chair of the Industrial Engineering Group at Eversheds, said:

“This acquisition is a prime example of the high-calibre, multi-jurisdictional work being completed in the Industrial Engineering Group. Drawing on quality expertise from a number of practice areas and offices, the team worked tirelessly on this complex international deal which involved many parties who were based across the world. The end result is a quality transaction which will provide strategic value to our client.” 

The transaction is subject to customary closing conditions and is expected to be completed in 2011.