Benzinga | Jun 9, 2021 06:05AM EDT

SPX To Sell SPX Transformer Solutions To GE-Prolec Transformers For $645M

SPX Corporation ("SPX") announced today 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. (together with its affiliates, "Prolec GE"), a subsidiary of a joint venture between GE (NYSE: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 Corporation was represented by J.P. Morgan Securities LLC as exclusive financial adviser, and by K&L Gates LLP as legal adviser.