SPX Seized the Window of Opportunity

Implications: SPX`s acquisition of APV is a fine example of a strategic power play to gain market share from formable giants the likes of Tetra-Laval and GEA.  Timely executed the strategy takes advantage of a recognized need for higher heat exchanger efficiencies and an increase of installed base.  The deployment of the strategy included the recruitment of ex Alfa-Laval Global General Manger Market Unit for Vegetable Oil Technology, Charles Ruben, a commendable manoeuvre.  

Analysis: The recent acquisition of APV by SPX signals a management decision that demonstrates visionary leadership.  The APV brand while not as strong as Tetra-Laval, GEA or SWEP in the sanitary flow equipment business is never-the-less a recognized competitor with a pedigree.  SPX can now dust off APV, apply some much needed polish in the form of capital and challenge the leadership for a much larger stake of the heat exchanger market. This strategic acquisition allows SPX to enter a mature market as an established player in time to reposition their value proposition as a contender. 

The demand for heat exchangers will see a significant increase as the global focus for sustainable energy legislates accountability which we in the industry can translate to mean higher heat recovery efficiencies. Where previously no heat exchanger installed base existed there will be a need and those that had heat exchangers will have to redesign for higher efficiencies. It is a win/win situation.

Development in the bioengineering of plant robustness will also increase crop yields that in turn will drive higher capacity throughputs on existing and new food processing lines. Heat exchangers are a key component found in food processing and utility lines, again increasing the demand for heat exchangers.
 
Having noticed the February 2008 appointment of Charles Ruben to the position of Global Plate Heat Exchangers Sales Director within APV now part of SPX Corporation, the strategy further unfolds. Timely indeed, since Charles Ruben was previously employed with the global leader, Alfa-Laval for eight years, long enough to learn a few tricks of the trade.

Congratulations SPX. Leveraged correctly and deployed globally SPX`s strategy for market penetration will make for great reading as an MBA case study.