SPX Corporation announced that its Board of Directors has unanimously approved a plan for a spin-off of its flow business into a new standalone, publicly traded company. This transaction is expected to be completed within 12 months.
Upon completion of the spin-off, SPX says the future flow company will be an independent, pure-play flow company providing highly engineered technologies and services to customers in global power and energy; food and beverage; and industrial markets, according to the announcement.
Chris Kearney will serve as chairman, president and chief executive officer of the flow company upon completion of the transaction.
The balance of SPX, the future infrastructure company, will be a standalone company as a supplier of highly engineered power equipment, HVAC products and specialty infrastructure technologies.
Michael Mancuso will serve as chairman of the infrastructure company. Mancuso has been a director on SPX’s Board since 2005 and also retired as the vice president and chief financial officer of General Dynamics after 13 years of service. Gene Lowe, currently the president of SPX’s Thermal Equipment and Services Segment, will serve as president and chief executive officer of the future infrastructure company upon completion of the transaction.
“The future flow company will focus on expanding its product offering through innovation, commercial and strategic initiatives, as well as increasing its customer service capabilities in the aftermarket,” Kearney said. “It will also remain committed to improving operational performance and returning capital to shareholders.”
The Future Flow Company
The flow company will consist of SPX’s current Flow segment and its hydraulic technologies business. SPX say it is expected to have annual revenue of approximately $3 billion and to be well positioned for future growth and operational improvement as a leading provider of highly engineered flow technologies, solutions and aftermarket services for power & energy, food & beverage and industrial applications.
Its broad component offering will include a variety of centrifugal and reciprocating pumps, various control valves, filtration and dehydration equipment, mixers, plate heat exchangers and hydraulic technologies. The company will also provide skidded and full-line systems, as well as aftermarket replacement components, parts and services.
Its key brands will include ClydeUnion, M&J Valve, Copes Vulcan, Bran & Luebbe, GD Engineering, Plenty, APV, Waukesha Cherry-Burrell, Anhydro, Gerstenberg Schroder, Seital, e&e, Lightnin, Johnson Pump, Dollinger, Pneumatic, Delair, Deltech, Power Team, Bolting Systems and Hytec.
The Future Infrastructure Company
The future infrastructure company will consist of SPX’s current Thermal segment and its power transformer, Radiodetection, Genfare and communication businesses. It is expected to have annual revenues of approximately $2 billion and to be well positioned for a global power market recovery and infrastructure investment with leading positions in power and HVAC markets and a diverse offering of highly engineered, specialty infrastructure products.
Its key product lines will include a wide variety of cooling technologies, power transformers, heat exchangers, pollution control filters, residential and commercial boilers, comfort heating products, underground locators, fare collection systems and communication technologies.
Its key brands will include Marley, Waukesha, Balcke-Duerr, Recold, Weil-McLain, Marley Engineered Products, Radiodetection, Genfare, TCI and Flash Technologies.