SPX Corp. To Spin Off Flow Business

(RTTNews) - SPX Corp (SPW) Wednesday said its board approved the spin-off of its Flow business into a independent publicly traded company, leaving the balance of SPX as an infrastructure company. SPX estimates after-tax, non-recurring costs for the spin-off to be $60 million-$80 million.

The new flow company, Future Flow Company, which includes SPX's current flow segment and its hydraulic technologies business, is expected to assume SPX's 6.875 percent senior notes due 2017, as part of the transaction.

The new infrastructure company, Future Infrastructure Company, includes the thermal segment and its power transformer, radiodetection, genfare and communication businesses, and SPX expects it to generate annual revenues of about $2 million. The flow company is expected to record about $3 million of annual revenues.

Chairman, President and Chief Executive Officer of SPX, Chris Kearney will continue all his roles in the new flow company, post spin-off, which is scheduled to be completed within a year.

Michael Mancuso, one of SPX's directors, will be the chairman of the infrastructure company, with Gene Lowe, president of SPX's thermal equipment and services segment, taking up the roles of president and CEO.

SPX will distribute the entire volume of flow company's shares to existing SPX shareholders, the company said in a statement.