SPX Closes Sale Of Its JV Interest In EGS Electrical Group - Quick Facts

(RTTNews) - SPX Corp. (SPW) announced the completion of the sale of its 44.5 percent joint-venture interest in EGS Electrical Group LLC to Emerson Electric Co. (EMR) for $574 million.

SPX expects the sale to result in an after-tax gain of at least $300 million, or at least $6.50 per share, in its first quarter results. It also expects to pay cash taxes of about $225 million on the deal, bringing the net, after-tax proceeds to about $350 million.

SPX added that it plans to allocate $500 million to share repurchases and reduce gross debt by about $300 million from the combined net proceeds from this asset sale, planned divestitures of discontinued operations and cash on hand.

To facilitate the share repurchases, SPX entered into a 10b5-1 stock repurchase agreement that began trading in December and is expected to be completed by the end of 2014.