Share price of SPX Corporation (SPW) increased 2.44% after the company announced on Apr 15, that its Precision Components business has been acquired by RFE Investment Partners and 24/6 Capital Partners, two private equity firms for about $62 million. Loop Capital Markets are the financial advisors for SPX Corporation for this deal.
Precision Components is a global producer of diverse components for rotorcraft and fixed wing aerospace platforms that include highly engineered, precision, flight critical gears among others. These components cater to the requirements of the military and commercial markets. Precision Components manufactures these critical parts using hard alloys to meet the compliance norms for stringent tolerance level and high quality. The company’s manufacturing facilities are located in Newington, CT and Ronkonkoma and Farmingdale, NY.
The decision to sell off the Precision Components business was a strategic move by SPX Corporation as the company primarily focuses on two core areas which include power and energy and food and beverages.
Prior to this divestiture, the company completed two other sell-offs which include the sale of its EGS Electrical Group to Emerson Electric Co. (EMR) in Jan 2014, for $571 million and the second one being the sell-off of its Thermal product solutions to Resilience Capital Partners, an equity firm for $43 million.
Based in Charlotte, NC, SPX Corporation is a leading multi-industry manufacturing leader with annual revenues of approximately $5 billion. SPX Corporation currently carries a Zacks Rank #2 (Buy). Other stocks that look promising and are worth a look now include Motorcar Parts of America Inc. (MPAA), Douglas Dynamic, Inc. (PLOW) and Remy International, Inc. (REMY). All three stocks carry a Zacks Rank #1 (Strong Buy).
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