SPX Flow generates $475M from sale of power-energy unit
Charlotte-based SPX Flow Inc. is selling a “substantial portion” of its Power and Energy business segment to New York-based private equity firm Apollo Global Management Inc.
Per the agreement, the Apollo fund affiliate will purchase the P&E business for $475 million. The transaction is expected to be completed in the first half of 2020, depending on regulatory approvals and closing conditions.
The Power and Energy segment contributes roughly $500 million of the company’s $2 billion in annual revenue, according to SPX Flow documents.
José Larios, who serves as president of Power and Energy and Industrial for SPX Flow, has been tapped to lead the new business as CEO.
SPX Flow intends to use the proceeds to reduce its debt levels and offer returns to shareholders, according to the company’s announcement.
“This transaction will bolster our financial position, creating ample flexibility to broaden our capital allocation, and enable us to invest in our business throughout economic cycles,” said Marc Michael, president and CEO of SPX Flow.
SPX Flow was formed in 2015 after being spun off by SPX Corp., which provides infrastructure equipment for heating, ventilation and air conditioning systems. SPX Flow shares closed today at $48.32 and have traded between $27.23 and $48.79 in the last 52 weeks. It had annual revenue of $2 billion in its last fiscal year and employs about 7,000.