Bosch Ltd

CORPORATE

Following approval of antitrust authorities

Bosch completes acquisition of SPX Service Solutions Purchase of U.S. diagnostics and service specialist expands product portfolio

   Acquisition strengthens Bosch market position in workshop and repair business

   Portfolio for brand-dependent workshops extended

   Expansion of global presence in the diagnostics area

Karlsruhe, Germany / Canton, MI – Following approval by the antitrust authorities, Bosch has completed its acquisition of SPX Service Solutions, a U.S. automotive diagnostics specialist. The agreement to purchase the company was signed in January this year. SPX Service Solutions develops, manufactures, and sells service equipment, repair-shop accessories, and software for the global automotive market. Based in Canton, MI (USA), SPX Service Solutions generated sales of some 920 million dollars (some 660 million euros) in 2011. The diagnostics specialist employs some 2,800 associates in 17 countries, and has manufacturing sites in the U.S., Germany, France, and China. The purchase price is 1.15 billion dollars (some 885 million euros).

“In acquiring SPX Service Solutions, we will become a comprehensive supplier of solutions in the diagnostics and repair business. In expanding our portfolio and extending our global presence, especially in the U.S., we are strengthening our position,” said Robert Hanser, the president of the Bosch Automotive Aftermarket division. “We will quickly merge our know-how and wealth of experience in this growing market. Our aim is to be- come the world’s leading supplier of diagnostics solutions for all makes of vehicle.”

Impact on Bosch India Aftermarket operations

In India the SPX Service Solutions acquisition will result in an enhanced product and service portfolio for the Automotive Aftermarket division along with a gateway to OES (Original Equipment Supplier) customers.The augmented Bosch India portfolio will now include Technical Information and Services (TIS) offering services like repair manual generation, spare part manuals, labour time study for workshops. Other inclusion include Dealer Equipment Service (DES) and special tools and services (SST). With this augmentation Bosch India is aiming at provision of complete solutions to OE (Original Equipment) workshop estalishments. 

Commenting on the development, Mr. S Muralidharan, Vice-President (automotive Aftermarket), Bosch Ltd said, “This acquisition opens many exciting new opportunities for Bosch India Automotive Aftermarket. We hope to enhance our position as part, equipment and service providers to complete solution providers in automobile service space. Above all it gives us the chance to be closer to all categories of customers, thereby opening new avenues for Diagnostic Services in Indian market."

Network of core competencies for a growing market

With automotive electronics becoming increasingly complex, the market for diagnostics solutions has a great deal of potential for growth. Up to now, Bosch has served this market with products and services for diagnosing, servicing, and repairing passenger cars and commercial vehicles, with brand-independent workshops as its main customers. The portfolio of SPX Service Solutions comprises engineering services for automakers, as well as accessories and services for workshops. Combining these complementary areas of competence will provide Bosch with a wider range of customers and a broader portfolio, and open up new market opportunities, especially in Asia Pacific and Europe.

Areas to be merged in new “Automotive Service Solutions” business unit The business activities of SPX Service Solutions will be integrated into the Bosch Automotive Aftermarket division, a leading supplier of aftermarket-specific products and services which generated sales of some 4.3 billion euros in 2011. As part of an integration project, the new “Automotive Service Solutions” business unit will be set up. The former Diagnostics business unit will also become part of this new business unit. All in all, these two business units generated sales of roughly one billion euros in 2011. Tanvir Arfi, who was general manager of SPX Service Solutions for many years, will be in charge of Automotive Service Solutions and its 4,400 associates. The unit’s world headquarters will be in Canton, MI (USA). The European operations of Automotive Service Solutions will be managed from the Plochingen location in Germany.