CHARLOTTE, N.C. - SPX Flow, Inc., a provider of premier process solutions, announced today that it completed the sale of its Power and Energy segment to funds managed by affiliates of Apollo Global Management, Inc. with net proceeds totaling approximately $400 million after adjustments, fees and taxes.
By completing the sale of its Power and Energy business, the company's exposure to oil and power generation is de minimis. SPX Flow's remaining revenue profile is comprised of approximately 50 percent sales into sanitary markets (such as food and beverage, pharmaceuticals, water and personal care) and approximately 50 percent sales into industrial markets (such as specialty chemical processing, air treatment and mining).
The net proceeds from the sale further strengthen the company's financial position. Net debt and interest coverage ratios are well below the company's debt covenants and liquidity is in excess of $1.1 billion (including more than $600 million of cash on hand and a $500 million undrawn, global revolver). This provides ample flexibility to maintain a conservative balance sheet while prudently investing in the business and opportunistically returning capital to shareholders.
In line with management's commitment to prioritize the use of divestiture proceeds on debt reduction and a return to shareholders, the company also announced today its intention to reduce total debt by $300 million, or more than 40 percent, to approximately $400 million in 2020. Additionally, management intends to return cash to shareholders through share repurchases over time. The company will continue to assess market and business conditions in connection with its capital allocation plans.