SPX FLOW Achieves Significant Milestone on Its Strategy to Unlock Value and Grow Its Premier Process Solutions Enterprise
Under the terms of the purchase agreement, the Apollo fund affiliate will purchase the P&E business in an all-cash transaction with an enterprise value of
Upon completion of the transaction, the company intends to prioritize the allocation of net proceeds on debt reduction and return to shareholders.
"We are building a premier process solutions enterprise from a strong foundation that includes world-class process engineering expertise, global capabilities and well-recognized product brands with leading market positions. We have tailored the design of our organization to support serving customers in highly complex process applications with an emphasis on driving a winning culture, enabling cross-functional teamwork and building core capabilities around customer intimacy, velocity and vitality. We are on track to achieve our financial goals of mid-teen EBITDA margins and double-digit ROIC by 2021. And we are developing detailed roadmaps to disproportionately invest for growth in select micro-verticals where customers value our process technologies, high-quality components and ability to provide service throughout the lifecycle.
"We are excited about our future and are focused on cultivating a people-first culture that delivers a world-class employee experience and a differentiated customer experience while also delivering on our commitment to create value for shareholders. I want to thank our teams across the enterprise, as well as our advisors and business partners, for their hard work and positive contributions to today's announcement and our progress this year," concluded Michael.
José Larios, who will lead Power and Energy as Chief Executive Officer said, "This is a very positive outcome for our Power and Energy team and we are excited for the future. Apollo is a marquee firm with significant resources, deep expertise in natural resources and a strong vision to invest for growth in our business. Our customers will benefit from that investment and focus on our leading brands of mission critical flow control equipment and services. I want to thank our Power and Energy team for steadfastly supporting our customers throughout this process and for delivering a strong performance this year. I appreciate their continued efforts and dedication as we work towards completion."
Apollo is a leading global alternative investment manager with offices in
FORWARD LOOKING STATEMENTS
Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. The words "expect," "anticipate," "plan," "target," "project," "believe" and similar expressions identify forward-looking statements. Forward-looking statements include, without limitation, statements about whether and when the transaction will be consummated and the anticipated timing or benefits thereof; expected financial positions; results of operations; cash flows; financing plans; business strategy; operating plans; capital and other expenditures; competitive positions; growth opportunities for existing products; and benefits from cost reduction initiatives, plans and objectives. These statements are only predictions. The company cautions that these statements are based on current estimates of future events and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. We caution the reader that there are a variety of risks, uncertainties and other factors that could cause actual results to differ materially from what is contained, projected or implied by our forward-looking statements. The potential risks and uncertainties include, among others, the possibility that the company and Apollo may be unable to obtain regulatory approval or that other conditions to closing the transaction may not be satisfied such that the transaction will not close or that the closing may be delayed; general economic conditions; the possibility of unexpected costs, liabilities or delays in connection with the transaction; risks that the transaction disrupts current plans and operations of the company; the ability to recognize the benefits of the transaction; the amount of the costs, fees, expenses and charges related to the transaction; the outcome of any legal proceedings related to the transaction; and the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction. In addition, all forward-looking statement should be read in conjunction with the company's documents filed with the
Investor Contact for SPX FLOW:
Media Contacts for SPX FLOW:
Investor Contact for Apollo:
Gary M. Stein
Head of Investor Relations
Media Contact for Apollo: