SPX Acquires APV: This Acquisition Could be Mutually Beneficial

Implications: In late 90's Invensys PLC, a UK based group, that specializes in providing control, automation for process industries, and control systems for rail type transportation network, had acquired APV, also a UK based company, that specializes in manufacturing of various type of technological equipment for dairies, breweries, wineries, and so on. While it was exciting to see the change, it looked like APV was not exactly a good fit in the Invensys's portfolio.

Analysis: Recent acquisition of APV by SPX Corporation is good for both APV and SPX.  SPX is well diversified group, that specializes in flow control technologies, test and measurement, some HVAC equipment that  includes Weil McLain, Marley Engineering Products, has also a division that makes various industrial equipment. The APV products could well fit into the flow technologies division, where APV's heat exchangers, homogenizers, pumps and valves could be a perfect fit and ground for expansion in the area of processing industries. In the world of processing, while it was noticeably present, APV was always in the fight with Alfa Laval, GEA, Tetra Pak  for the better market share. With the process of establishing new alternative fuels for autoimobiles, such as ethanol, and potential development of bio fuels, this outcome of this acquisition can offer processing industries new solutions  and deliver better share of the market to SPX.