- SPX Technologies ( NYSE: SPXC ) said Tuesday it divested three subsidiaries that hold asbestos liabilities and certain assets to Canvas Holdco, an entity formed by a joint venture of Global Risk Capital and a Premia Holdings affiliate.
- SPX ( SPXC ) contributed $138.8M in cash to the subsidiaries, financed with cash on hand, while Canvas made an $8M capital contribution.
- The divestiture is expected to result in an annual benefit of $0.08-$0.10 to SPX's ( SPXC ) adj. EPS starting in 2023.
- The divestiture will result in an estimated one-time loss that will be recorded in Q4.
- Canvas assumed operational management of the units, including administration of all asbestos claims and collection of existing insurance policy reimbursements.
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- As a result, all asbestos liabilities and related insurance assets will not be included in SPX's ( SPXC ) consolidated 2022 balance sheet.
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- "The divestiture provides greater long-term financial certainty for our investors as it simplifies our business model, improves cash generation, and frees up resources to focus on driving growth," said SPX ( SPXC ) CEO Gene Lowe.
For further details see:
SPX Technologies divests subsidiaries with asbestos liabilities