RTTNews | Jun 9, 2021 06:46AM EDT

06:45 Wednesday, June 9, 2021 (RTTNews.com) - SPX Corp. announced Wednesday that it has entered into a binding agreement to sell 100% of the issued and outstanding stock of its wholly-owned subsidiary, SPX Transformer Solutions, Inc., to GE-Prolec Transformers, Inc., a subsidiary of a joint venture between General Electric Co. (GE) and Xignux S.A. de C.V. for a cash purchase price of $645 million.

SPX anticipates that after taxes on a gain from the sale, net proceeds will be approximately $540 million. The purchase price is subject to customary net working capital and similar adjustments at closing.

The transaction is anticipated to close during the second half of 2021, subject to the satisfaction of typical closing conditions, including antitrust regulatory review.

SPX is updating its 2021 guidance for the anticipated sale of SPX Transformer Solutions. SPX plans to update its segment reporting structure to eliminate the Engineered Solutions segment, and to report the results of its Process Cooling business within its HVAC segment.

For fiscal 2021, SPX now anticipates adjusted earnings in a range of $2.17 to $2.37 per share, down from the prior guidance range of $3.06 to $3.26 per share. SPX also anticipates adjusted revenue of approximately $1.25 billion, compared to prior guidance of $1.7 billion.

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