“We are very excited to welcome the CUES team to SPX. CUES is a clear leader in pipeline inspection and rehabilitation products with recognizable brands, strong technology and an excellent reputation,” said Gene Lowe, president and CEO of SPX, in a June 7 press release. “This acquisition substantially strengthens our inspection business within our Detection & Measurement segment, our fastest growing and highest margin segment, and further positions our company to achieve our long-term growth and value creation targets.”
SPX announced the acquisition April 23 and in that press release Lowe states CUES will add a complimentary solution to SPX’s Radiodetection business.
Under the agreement, a subsidiary of SPX will be merged with CUES’ parent company, ELXSI Corp. Sandy Milley, president and CEO of ELXSI, will remain with ELXSI following the closing of the transaction and will continue to lead the CUES business. ELXSI’s 2017 annual net sales were approximately $90 million, and following completion of the transaction, ELXSI’s results will be reported with SPX’s Radiodetection business within its Detection & Measurement segment.
“The combination of CUES with SPX’s Radiodetection business is an excellent fit,” Milley said in the April 23 press release. “Bringing together CUES’ strong reputation for high quality pipe inspection equipment and services with SPX’s global footprint and marketing infrastructure is a natural step in taking CUES to the next level of growth and performance. I’m very excited about the numerous opportunities this transaction creates for our employees and customers alike, and personally look forward to working with the SPX team to build an even stronger, more valuable platform.”
SPX is also increasing its 2018 adjusted earnings per share guidance to a range of $2.15 to $2.25 from $2.03 to $2.18 to account for the inclusion of the partial year results of CUES as well as Schonstedt Instrument Company, the acquisition of which was completed during the first quarter of 2018. The results of both CUES and Schonstedt will be reported as part of the company’s cable and pipe locators and inspection equipment business within the Detection & Measurement segment.