SPX Corp., which owns the Rochester-based manufacturers Lightnin Corp. and Kayex Corp., has signed an agreement to sell its Edwards Systems Technology to General Electric Co. for nearly $1.4 billion.
The sale is subject to antitrust clearance and customary closing conditions and is expected to be completed in the first quarter.
SPX intends to use the net proceeds from the transaction to pay down debt and buy back equity.
John Blystone, chairman, president and CEO of SPX, said the transaction will yield significant after-tax proceeds.
â€œThis transaction is consistent with our â€˜fix, grow, sellâ€™ strategy and affirms the value improvement process we have used since 1996,â€ Blystone said.
Edwards Systems Technology was acquired by SPX in 1998. The company engineers and develops fire detection and building life-safety systems, as well as school and health care communications systems.
(c) 2004 Rochester Business Journal. Obtain permission to
reprint this article.