CHARLOTTE – SPX Flow, Inc. announced that it will sell a substantial portion of its former Power and Energy segment to Apollo Global Management, Inc. fund affiliate in a press release Monday.
The Apollo fund affiliate has agreed to purchase the business in an all-cash transaction with an enterprise value of $475 million.
SPX said the company will be concentrated on the sanitary and specialty industrial markets after completion of the Power and Energy unit sale.
“We are building a premier process solutions enterprise from a strong foundation that includes world-class process engineering expertise, global capabilities and well-recognized product brands with leading market positions,” stated Marc Michael, president and CEO of SPX.
The transaction is expected to close in the first half of 2020, but is still subject to customary regulatory approvals and closing conditions. Upon completion of the transaction, SPX will prioritize the allocation of its net proceeds on debt reduction and return to shareholders.
SPX manufactures and supplies innovative technologies for the food and beverage, power and energy and industrial markets. Its shares closed at $48.30 this afternoon, down 2 cents.
This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s Hussman School of Journalism and Media.