US-based infrastructure company SPX has signed an agreement to sell its Transformer Solutions business to GE-Prolec Transformers, together with its affiliates Prolec GE, for $645m.
GE-Prolec is a subsidiary of a 50/50 joint venture between GE and Mexican company Xignux.
Headquartered in Waukesha, Wisconsin, SPX’s Transformer Solutions business offers transformer services solutions and components, producing power transformers with capacities of five megavolt-ampere (MVA) to 1,200MVA.
The business operates manufacturing facilities in Wisconsin, North Carolina and Texas. Each of these facilities will become part of Prolec GE once the deal is completed.
SPX president and CEO Gene Lowe said: “As a key provider of high-quality, sustainable solutions for the delivery of electrical energy, Prolec GE is an excellent fit to lead the next phase of growth and value for SPX Transformer Solutions’ customers and employees alike.”
The deal is expected to be completed in the second half of this year subject to regulatory approvals and other customary closing conditions.
The deal will position Prolec GE as a major distribution and power transformer company, offering customers a wide range of products and an enhanced next-generation portfolio.
Prolec GE CEO Ricardo Suarez said: “Prolec GE’s vision is to be recognised as the most reliable and strategic partner to our customers for innovative and sustainable energy solutions.
“The combined entity will remain a strong partner to its customers and will be better suited to continue delivering quality products and supporting the evolution of the grid in the US and the rest of the Americas.”
Prolec GE offers transformer solutions with capacities of 5kVA to 1,000MVA for generation, transmission and distribution applications.
The company currently operates three manufacturing facilities, located in the US, Mexico and Brazil.