Completion of Sale Expected During First Half of 2016
SPX Corporation (NYSE: SPXC) today announced an agreement for the sale of its Dry Cooling business to Paharpur Cooling Towers Limited ("Paharpur"). The purchase price is estimated to be approximately $48 Million, subject to adjustments for working capital at closing. The transaction is expected to be finalized during the first half of 2016 and is subject to the receipt of certain regulatory approvals. The transaction does not include SPX's South African subsidiary, DBT Technologies (Pty) Ltd. Other terms of the transaction were not disclosed.
The Dry Cooling business, which is headquartered in Brussels with facilities in China and the United States, accounts for approximately 10% of the revenues of SPX's Power Segment. This business also includes SPX's ownership interest in its Joint Venture with Shanghai Electric. The anticipated sale proceeds will provide the company with a greater ability to deploy capital in accordance with its stated capital allocation policy. Until the sale is completed the results of Dry Cooling will remain in the company's continuing operations.
Gene Lowe, President and CEO, said, "The agreement for the sale of our Dry Cooling business represents an early step in our commitment to shareholders to optimize capital utilization by emphasizing businesses that fit our strategic profile. We believe that as part of Paharpur's portfolio, the Dry Cooling business will be well positioned strategically to benefit from Paharpur's long-term focus on dry cooling solutions."
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