SPX Corporation plans to create a spin-off of its Flow business as a new standalone, publicly traded company. This transaction should be complete within twelve months.
Upon completion of the spin-off, the Future Flow Company will be an independent, pure-play flow company providing highly engineered technologies and services to customers in 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.
The balance of SPX, the Future Infrastructure Company, will be a standalone company supplying highly engineered power equipment, HVAC products, and specialty infrastructure technologies.
Michael Mancuso will serve as Chairman of the Future Infrastructure Company. Mr. Mancuso has been a director on SPX’s Board since 2005 and also retired as the Vice President and Chief Financial Officer of General Dynamics after 13 years of service.
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 Chris Kearney, Chairman, President, and Chief Executive Officer.
“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 Gene Lowe.
“Through on-going 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.”
The Future Flow Company will consist of SPX’s current Flow segment and its hydraulic technologies business. It is expected to have annual revenue of approximately $3 billion and to be well positioned for future growth and operational improvement as a leading provider of highly engineered flow technologies, solutions, and aftermarket services for power and energy, food and beverage, and industrial applications.
Its broad component offering will include a variety of centrifugal and reciprocating pumps, various control valves, filtration and dehydration equipment, mixers, plate heat exchangers, and hydraulic technologies. The company will also provide skidded and full-line systems, as well as aftermarket replacement components, parts, and services.
Its key brands will include ClydeUnion, M&J Valve, Copes Vulcan, Bran & Luebbe, GD Engineering, Plenty, APV, Waukesha Cherry-Burrell, Anhydro, Gerstenberg Schroder, Seital, e&e, Lightnin, Johnson Pump, Dollinger, Pneumatic, Delair, Deltech, Power Team, Bolting Systems and Hytec.
The Future Infrastructure Company will consist 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 and to be well positioned for a global power market recovery and infrastructure investment with leading positions in power and HVAC markets and a diverse offering of highly engineered, specialty infrastructure products.
Its key product lines will include a wide variety of cooling technologies, power transformers, heat exchangers, pollution control filters, residential and commercial boilers, comfort heating products, underground locators, fare collection systems, and communication technologies.
Its key brands will include Marley, Waukesha, Balcke-Duerr, Recold, Weil-McLain, Marley Engineered Products, Radiodetection, Genfare, TCI, and Flash Technologies.