SPX FLOW Inc., a leading provider of process solutions for the food, beverage & industrial markets, recently entered into a combination agreement to launch a voluntary recommended public tender offer, through its German subsidiary SPX Flow Technology Germany GmbH, to acquire all issued and outstanding shares in UTG Mixing Group.
UTG, with locations in Finland and Germany, is a publicly traded producer of specialty mixing technologies for the chemical, food and beverage, metallurgical and fertilizer, environmental technology, water treatment and pharmaceuticals markets under the Stelzer, Uutechnic, and Jamix brands.
"We are excited about the potential growth and synergy opportunities presented by bringing UTG Mixing Group into the SPX FLOW family," said Marc Michael, chief executive officer of SPX FLOW. "UTG's products, skilled team members, technical expertise, manufacturing, and sales channels align well with our strategy to grow our core business in processing products and technologies. We expect this acquisition to add valuable additional capability and range to our global portfolio of mixing solutions and increase our presence in the European market."
"We are pleased to join with a reputable global leader in mixing technology and process solutions like SPX FLOW," said Jouko Peräaho, chief executive officer of UTG Mixing Group. "Their sales network presents excellent opportunities to expand the sales of Stelzer, Uutechnic, and Jamix mixers worldwide, and we look forward to helping grow our combined mixing solutions offerings for the future."
The transaction, which is unanimously recommended by UTG's Board of Directors, is expected to close in the first quarter 2021. The completion of the tender offer is subject to certain customary conditions to be fulfilled or waived by SPX FLOW on or by the date of SPX FLOW 's announcement of the final result of the tender offer, including, among other things, SPX FLOW gaining control of more than 90% of the issued and outstanding shares and votes in UTG on a fully diluted basis and the obtaining of all necessary regulatory approvals.