Nov. 12, 2014: SPX Announces Plan for Spin-Off of Its Flow Business
This Move Will Result in Two Standalone Companies
CHARLOTTE, N.C. — SPX Corp. announced that its board of directors has unanimously approved a plan for a tax-free 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, the Future Flow Company will be an independent company providing highly engineered technologies and services to customers in the global power and energy, food and beverage, and industrial markets. Chris Kearney will serve as chairman, president, and chief executive officer of the Future Flow Company upon completion of the transaction.
The balance of SPX, the Future Infrastructure Company, will be a standalone company with leading positions as a supplier of highly engineered power equipment, HVAC products, and specialty infrastructure technologies. Michael Mancuso will serve as chairman of the Future Infrastructure Company. Mancuso has been a director on SPX’s board since 2005. 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.
“SPX has a long history focused on creating value for its shareholders. Over the past several years, we have transformed SPX by diversifying away from our legacy automotive roots, expanding globally into diversified infrastructure markets and, most recently, expanding our Flow business in attractive growth markets and realigning our resources to better serve our global customer base,” said Kearney.
“We believe the spin-off will provide both companies greater flexibility to focus on and pursue their respective growth strategies, enabling them to create significant value for shareholders, customers, and employees,” Kearney continued. “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. It will also remain committed to improving operational performance and returning capital to shareholders.”
“The Future Infrastructure Company is well established with strong brand recognition and leading market positions throughout its portfolio of businesses,” said Lowe. “Through ongoing innovation efforts, continued focus on operational excellence, and strategic initiatives, we believe the Future Infrastructure Company will be better positioned to serve our global power and infrastructure customers.”
For more information, visit www.spx.com.
Publication date: 11/10/2014