SPX Technologies signed an agreement to purchase ASPEQ Heating Group from Industrial Growth Partners, a San Francisco-based private equity firm. Headquartered in St. Louis, ASPEQ provides electrical heating solutions via its brands: Indeeco, Heatrex, AccuTherm, Brasch, Spectrum, BannerDay PipeHeating, BBC and Solar Products. 

Under the terms of the agreement, Charlotte-based SPX Technologies will purchase ASPEQ and certain tax attributes for approximately $418 million in cash. SPX Technologies intends to finance the acquisition of ASPEQ by drawing on its revolving credit facility and borrowing under its recently announced incremental-term loans.

“We are looking forward to welcoming ASPEQ to the SPX Technologies team,” said Gene Lowe, president and CEO of SPX Technologies. “This will be our largest acquisition to date and will significantly expand our portfolio of [industrial and commercial] electrical heating products where we see attractive growth trends, including decarbonization.”

ASPEQ will become a part of SPX Technologies’ HVAC Heating platform, within its electrical heating business, along with Marley Engineered Products (MEP). ASPEQ has annual revenue of approximately $120 million and is expected to be accretive to the margin of SPX Technologies’ HVAC segment.