SPX Announces Agreement for Sale of European Power Generation Business Transaction Expected to Close by Year-End
November 23 2016 - 7:30AM
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.
About SPX Corporation:
Based in Charlotte, North Carolina, SPX Corporation is a leading
supplier of highly engineered HVAC products, detection and
measurement technologies and power equipment. With operations in
about 20 countries, SPX Corporation had approximately $1.7 billion
in annual revenue in 2015 and approximately 6,000 employees
worldwide. SPX Corporation is listed on the New York Stock Exchange
under the ticker symbol “SPXC.” For more information, please
visit www.spx.com.
About mutares AG: Based in Munich,
Germany, mutares AG is an industrial holding company that focuses
on acquiring companies currently finding themselves in a special
situation, such as owner or management succession or strategic
repositioning. Getting engaged with its own teams, mutares actively
supports its portfolio companies ensuring sustainable, long-term
growth. The shares of mutares AG are traded on the Frankfurt Stock
Exchange under the symbol MUX (ISIN: DE000A0SMSH2). For more
information, please visit www.mutares.com.
*Non-GAAP financial measure. Adjusted EPS is calculated in a
manner consistent with the presentation of Adjusted EPS in SPX’s
press release dated November 3, 2016 and submitted as Exhibit 99.1
to SPX’s Current Report on Form 8-K dated November 3, 2016.
Because of the forward-looking nature of the estimate of Adjusted
EPS, it is impractical to present a quantitative reconciliation of
such measure to a comparable GAAP measure, and accordingly no such
GAAP measure or reconciliation is being presented.
Certain statements in this press release are
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, and are subject to the
safe harbor created thereby. Please read these results in
conjunction with the company's documents filed with the Securities
and Exchange Commission, including the company's annual reports on
Form 10-K, and any amendments thereto, and quarterly reports on
Form 10-Q. These filings identify important risk factors and other
uncertainties that could cause actual results to differ from those
contained in the forward-looking statements. Actual results may
differ materially from these statements. The words “believe”,
"expect," "anticipate," "project" and similar expressions identify
forward-looking statements. Although the company believes that the
expectations reflected in its forward-looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. In addition, estimates of future operating
results are based on the company's existing operations and
complement of businesses, which are subject to change.
Statements in this press release speak only as
of the date of this press release, and SPX disclaims any
responsibility to update or revise such statements.
Investor Contact:
Paul Clegg, Vice President, Finance and Investor Relations
Phone: 980-474-3806
E-mail: spx.investor@spx.com
Media and Customer Contact:
Vivek Dhir, Vice President, Global Marketing and Business Development
Phone: 980-474-3703
E-mail: vivek.dhir@spx.com
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