SPX Technologies Announces Acquisition of Sigma & Omega

Core Viewpoint - SPX Technologies has acquired Sigma Heating and Cooling and Omega Heat Pump for approximately $144 million (CAD 200 million), which aligns with its typical acquisition multiple of 8x-12x Adjusted EBITDA [1][6]. Company Overview - Sigma & Omega, founded in 1997, is a Toronto-based manufacturer specializing in hydronic heating and cooling equipment, including vertical stack heat pumps and fan coils, with anticipated annual revenues of approximately $65 million in 2025 [2][3]. - The company employs around 220 people and primarily serves domestic Canadian customers [2][3]. Strategic Integration - Sigma & Omega will be integrated into SPX's hydronics business, enhancing the HVAC segment alongside Weil-McLain and Patterson-Kelley [3]. - SPX aims to increase Sigma & Omega's sales to U.S. customers through expanded U.S.-based production [3]. Synergies and Growth Potential - The acquisition is expected to create significant synergies with SPX's existing HVAC businesses, enhancing the value provided to customers [4]. - Sigma & Omega's product offerings, including vertical stack water-sourced heat pumps and commercial self-contained units, are complementary to SPX's current portfolio, targeting growth in high-rise residential buildings, hotels, schools, hospitals, and commercial properties across North America [4]. Management Statements - SPX's President and CEO expressed excitement about the acquisition, highlighting the strategic fit and potential for continued growth in attractive end markets [4]. - Founders of Sigma & Omega noted that the partnership will create new opportunities for employees, customers, and shareholders, enhancing the overall value of the platform [4].