SPX Announces Restructuring
MUSKEGON, Mich. (AP) _ SPX Corp., an automotive supply company, on Monday announced a restructuring designed to help it concentrate in the automobile parts and specialized tool markets.
SPX said it was forming a limited partnership among four of its original- equipment divisions, an investment banking firm and a management team, and setting up an employee stock ownership plan.
The new partnership, called Sealed Power Technologies Ltd., will combine the Sealed Power, Hy-Lift, Contech and Filtran original-equipment divisions of SPX.
SPX and Goldman, Sachs & Co. each will hold 49 percent of the partnership’s stock with the remaining 2 percent held by the management team, SPX spokesman John Tyson said.
Also as part of the restructuring, SPX said it would issue a one-time, $13- per-share dividend to SPX shareholders and sell five small businesses outright. Tyson declined to identify those businesses other than to say some were in the automotive field.
SPX Chairman Robert Tuttle said the partnership will be the world’s largest maker of piston rings and transmission fluid filters, used in assembling automobiles. The four divisions which will make up Sealed Power Technologies had $357 million in sales last year.
In addition to piston rings and filters, SPX makes special tools and electronic diagnostics products used after an automobile is sold. Last year, the corporation earned $44.9 million on sales of $877.7 million.