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SPX to buy Scottish pump company Clydeunion

SPX Corp. plans to purchase Scotland-based Clydeunion Pumps for $1.15 billion (GBP700 million), the company announced Wednesday.

The acquisition is a move to grow the manufacturing and industrial-equipment supplier's international customer portfolio, Dow Jones News reports. Clydeunion provides centrifugal pumps and reciprocating pumps used in power generation, oil and gas processing and other industrial applications.

Based in Glasgow, Clydeunion Pumps has about 2,000 employees at eight manufacturing facilities and 25 service centers around the world. The company is expected to generate GBP400 million in revenue for 2011.

The actual acquisition agreement is with a fund of Clyde Blowers Capital Ltd, Dow Jones reports. Some of Clydeunion's management will receive an added payment of up to GBP50 million depending on the firm's adjusted earnings next year. The purchase is set to be completed by the fourth quarter.

SPX is based in Charlotte, North Carolina. The company manufactures highly-specialized, engineered products including thermal heat transfer equipment for power plants, power transformers for utility companies and process equipment for the food and beverage industry. SPX's annual revenue totals nearly $5 billion. The company employs 15,500 in 35 countries.