SPX sells Bomag compaction business for £242m

The SPX Corporation has signed a definitive agreement to sell its Bomag compaction equipment business to Fayat for £242m cash.

SPX said it will use the proceeds to pay debt, and the transaction is expected to close in the fourth quarter of 2004.

Bomag is expected to have 2004 revenues of approximately £250m and will be integrated into the French-owned Fayat road building equipment business based in Bordeaux.

John Blystone, chairman, president and chief executive officer of SPX said: “Bomag no longer fitted our long term strategy and we are pleased it generated a robust auction.”