Charlotte-based SPX Corp. plans to split into two companies, spinning off its flow business into a standalone, publicly traded company within twelve months. Chris Kearney will serve as chairman, president and CEO of the new flow company.
The new flow business is expected to have annual revenue of approximately $3 billion. Its product lines will include plate heat exchangers, centrifugal and reciprocating pumps, control valves, filtration and dehydration equipment, mixers and hydraulic technologies. Its key brands will include APV, Waukesha Cherry-Burrell, Anhydro, ClydeUnion, M&J Valve, Copes Vulcan, Bran & Luebbe, GD Engineering, Plenty, Gerstenberg Schroder, Seital, e&e, Lightnin, Johnson Pump, Dollinger, Pneumatic, Delair, Deltech, Power Team, Bolting Systems and Hytec.
The balance of SPX will become a standalone company consisting 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. Michael Mancuso, a current member of SPX Corp.’s board of directors, will serve as chairman. Gene Lowe, currently the president of SPX's Thermal Equipment and Services Segment, will serve as president and CEO.
Its key product lines will include cooling technologies, heat exchangers, pollution control filters, power transformers, residential and commercial boilers, comfort heating products, underground locators, fare collection systems and communication technologies. Brands include Marley, Balcke-Duerr, Recold, Marley Engineered Products, Waukesha, Weil-McLain, Radiodetection, Genfare, TCI and Flash Technologies.
SPX anticipates completing the transaction by distributing all of the shares of the future flow company to SPX shareholders, who will initially own 100 percent. It is expected that the transaction will be tax-free to SPX’s U.S. shareholders. After-tax one-time costs associated with the transaction are expected to be in the range of $60 to $80 million.