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SGS acquired by SPX Corp.

Large company sees growth opportunities

DIXON – SGS Refrigeration has been acquired by SPX Corp., a deal that should spur more growth for the local manufacturer and distributor of industrial refrigeration products.

SPX, based in Charlotte, North Carolina, is a large publicly traded company with revenues of $1.4 billion last year. It is a global leader in the HVAC, detection and measurement, and engineered solutions markets. The company has about 4,000 employees in 17 countries.

SGS will become part of SPX’s HVAC Cooling business unit.

Although integration plans are in the early stages, SPX sees growth opportunities in Dixon that could translate to jobs.

“We plan to put some equipment in Dixon, and we see it becoming a hub for us,” Paul Clegg, vice president of investor relations and communications at SPX, said Wednesday. “Plans are just getting kicked off, but some moves are being made to increase our presence in Dixon.”

SGS has focused primarily on industrial refrigeration, mainly for food and beverage companies. Its client base includes Walmart Distribution Centers, Tyson, Simpli and Excel Meats.

SPX familiarized itself with the Dixon company through an industrial refrigeration partnership established in 2015. They were impressed with what they saw – a strong brand that will complement what they do.

“We are excited about SGS joining the SPX team,” Gene Lowe, president and CEO of SPX Corp., said in a news release. “As a leader in industrial refrigeration, SGS has operated as a close partner with SPX in the evaporative condenser market. I am very pleased with the progress this partnership has made and look forward to the next phase of our growth together.”

SGS was founded in 2010, in Maryland, as a consulting company, and 3 years later, started manufacturing operations in Dixon. The company, based at 827 W. Progress Drive, grew quickly, and in January 2016, added space with the purchase of the former Anchor Coupling building at 1100 Anchor Road.

Starting with just a handful of employees in Dixon, the local operations now has a workforce of about 60. SGS had revenues of about $15 million in 2018.

The companies have not disclosed the purchase price.

SGS Refrigeration milestones

2010 – SGS Refrigeration is founded in Maryland by Peter Spellar and Ed Schinner, Johnson Controls retirees.

March 2013 – Enters manufacturing end of business by acquiring Krack Industrial Refrigeration business from Hussman Corp.

July 2013 – Acquires R.C. Schmidt Industrial LLC.

Fall 2013 – Begins full-scale production in Dixon.

January 2016 – Finalizes purchase of building at 1100 Anchor Road in Dixon.

July 2019 - Deal is finalized for SGS to be acquired by SPX Corp.

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