SPX Corporation agrees to sell European Power Generation business
SPX Corporation announced that it has entered into an agreement for the sale of its European Power Generation business, Balcke-Durr, to mutares AG, a German-based publicly traded industrial holding company. The closing of the transaction is expected to occur by December 31, 2016. The terms of the purchase agreement include the sale of the subsidiaries comprising Balcke-Durr in exchange for nominal cash at closing and a commitment by SPX to leave sufficient liquidity within Balcke-Durr, including a loan from SPX, to support ongoing operations and the implementation of mutares's strategic plan. A more detailed description of the transaction is provided in the company's Form 8-K filed with the SEC. As previously disclosed, the elimination of the underperforming portions of our Power Generation business would have the effect of increasing the company's current Adjusted EPS guidance for 2016 by more than 30c, the majority of which is attributable to the sale of Balcke-Durr. SPX anticipates that the transaction will qualify for discontinued operations presentation in our full-year 2016 financial statements, and now expects to report full-year Adjusted EPS significantly in excess of our current guidance range of $1.00-$1.20.