UPDATE 1-SPX Corp to sell JV stake to Emerson Electric for $571 mln
* Deal value includes taxes worth $220 mln
* Expects sale to close in first quarter 2014
* SPX expects to record gain of $6.50/share in first quarter
Dec 4 (Reuters) - SPX Corp said it would sell its 44.5 percent stake in EGS Electric Group LLC to partner Emerson Electric Co for $571 million to focus on its main business of making pumps, valves and mixers to process and transport fluids.
Emerson Electric, which makes industrial controls, power supplies and home-storage equipment, and SPX set up EGS Electric in 1997 with Emerson responsible for operational management.
The joint venture makes electrical fittings, hazardous location lighting and power conditioning equipment and had revenue of more than $500 million in 2013.
SPX said on Wednesday the deal value includes taxes worth about $220 million. The company expects to record an after-tax gain of about $300 million, or $6.50 per share, in its first quarter ended March 30.
SPX has been buying and selling businesses to focus on its flow technology business, which makes engineered pumps, valves, mixers and filtration technologies used for power generation and to process oil and gas.
The business had sales of $2.68 billion in 2012, just over half of total revenue.
Charlotte, North Carolina-based sold its service solutions business to Robert Bosch GmbH last year and tried to buy rival Gardner Denver Inc in December 2012.
SPX, which also makes equipment to produce food and beverages, transformers and cooling towers for power plants, said it expects the sale of its share of the joint venture to close in the first quarter of 2014.
SPX shares closed at $93.06 on the New York Stock Exchange on Tuesday. Shares of Emerson closed at $66.70. Both stocks have outperformed the S&P 500 in the past 12 months.