SPX Corp. (SPXC) to Sell European Power Generation Business
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SPX Corporation (NYSE: SPXC) announced that it has entered into an agreement for the sale of its European Power Generation business (the “Balcke-Dürr group,” or “Balcke-Dürr”) to mutares AG (“mutares”), a German-based publicly traded industrial holding company. The closing of the transaction is expected to occur by December 31, 2016.
The terms of the purchase agreement include the sale of the subsidiaries comprising Balcke-Dürr in exchange for nominal cash at closing and a commitment by SPX to leave sufficient liquidity within Balcke-Dürr, including a loan from SPX, to support ongoing operations and the implementation of mutares’s strategic plan. A more detailed description of the transaction is provided in the company’s Form 8-K filed today with the United States Securities and Exchange Commission.
Gene Lowe, President and CEO, remarked, “The agreement for the sale of Balcke-Dürr is another significant step forward on our value creation roadmap. Our team has worked tirelessly to arrive at the best possible solution for delivering on our commitment to eliminate the losses from the underperforming portions of our Power Segment. With the completion of this transaction, and the earlier sale of our Dry Cooling business, SPX will substantially complete the transformation of the Power Segment, leaving the company with three strong platforms to continue executing on our growth strategy.”
As previously disclosed, the elimination of the underperforming portions of our Power Generation business would have the effect of increasing the company’s current Adjusted EPS* guidance for 2016 by more than $0.30, the majority of which is attributable to the sale of Balcke-Dürr. SPX anticipates that the transaction will qualify for discontinued operations presentation in our full-year 2016 financial statements, and now expects to report full-year Adjusted EPS* significantly in excess of our current guidance range of $1.00-$1.20.
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