Charlotte-based SPX Corp. said Wednesday it is selling its European power generation business, a deal that is expected to close by the end of the year.
SPX is selling the business to Mutares AG, a Germany-based publicly traded industrial holding company. In a complex transaction, SPX said it will transfer the equity interests of the various subsidiaries comprising Balcke-Dürr, the power generation business, to Mutares on a debt-free basis in exchange for nominal cash at the deal’s closing.
SPX said both parties may terminate the agreement if either fails to satisfy its obligations at closing, though a break-up fee of 2.5 million euros ($2.6 million) would apply.
Last fall, SPX Corp. completed the spinoff of SPX Flow Inc., which now operates as a standalone company and manufactures equipment like pumps, valves and filtration systems. Last winter, SPX agreed to sell its dry cooling business to an Indian company for about $48 million.
“With the completion of this transaction, and the earlier sale of our Dry Cooling business, SPX will substantially complete the transformation of the Power Segment, leaving the company with three strong platforms to continue executing on our growth strategy,” said SPX President and CEO Gene Lowe in a statement.