SPX Corp.
SPXC,
-0.49%
announced Wednesday an agreement to sell its SPX Transformer Solutions Inc. subsidiary for $645 million in cash to GE-Prolec Transformers. The deal is expected to close during the second half of 2021. GE-Prolec is subsidiary of a joint venture between General Electric Co.
GE,
-1.19%
and Xignux S.A. de C.V. "As a key provider of high-quality, sustainable solutions for the delivery of electrical energy, Prolec GE is an excellent fit to lead the next phase of growth and value for SPX Transformer Solutions' customers and employees alike," said SPX Chief Executive Gene Lowe. The HVAC and detection and measurement company also updated its 2021 financial guidance for the anticipated sale of Transformer Solutions. Adjusted earnings per share is now expected to be $2.17 to $2.37, down from a previous $3.06 to $3.32, and revenue is now expected to be approximately $1.25 billion, down from a previous estimate of $1.7 billion. SPX's stock, which is still inactive in premarket trading, has advanced 17.1% year to date, while the S&P 500
SPX,
+0.08%
has gained 12.5%.