Harsco Sells Patterson-Kelley Business
CAMP HILL, Pa. --
- Cash proceeds to fuel innovation and growth amidst ongoing transformation into leading environmental solutions company
- Expects to sell remaining Industrial business in the near future
Harsco Corporation (NYSE: HSC) announced today that it has sold its Patterson-Kelly (“PK”) business to SPX Corporation (NYSE: SPXC) (“SPX”) for $60 million in cash, subject to post-closing adjustments.
Harsco expects to use the proceeds from the transaction to reduce debt, further strengthening its balance sheet to pursue growth. Following the completion of the transaction, the Company will have sold two of the three businesses that comprised its Industrials segment for a total of approximately $660 million. The Company today also reaffirmed its intent to divest the remaining business within the Industrial segment, IKG, in the near future.
“The sale of our Patterson-Kelley business marks yet another significant step for Harsco as we continue to transform into a single thesis environmental solutions company,” said Chairman and CEO Nick Grasberger. “The sale of PK further enables the Company to focus on our high growth areas with a stronger balance sheet, increased financial flexibility, and less cyclical businesses. This transaction is also a great outcome for PK as it will become part of a diversified global company that appreciates and values the business and is committed to growing it for the benefit of its customers and employees.”
Gene Lowe, SPX Corporation’s President and CEO, commented, “We are excited to welcome the Patterson-Kelley team to SPX. Patterson-Kelley is an excellent fit with SPX’s HVAC Heating platform that strengthens and accelerates our strategy in high-efficiency commercial boilers, and further enhances our product development capabilities. We look forward to the growth opportunities this transaction presents for employees and shareholders alike.”
Advisors
KeyBank is serving as financial advisor to Harsco and Squire Patton Boggs is serving as the Company’s legal advisor.
About Harsco Corporation
Harsco Corporation is a global market leader providing environmental solutions for industrial waste streams and innovative technologies for the rail and energy sectors. Based in Camp Hill, PA, the 11,000-employee company operates in more than 30 countries. Harsco’s common stock is a component of the S&P SmallCap 600 Index and the Russell 2000 Index. Additional information can be found at www.harsco.com.
About SPX Corporation
SPX Corporation is a supplier of highly engineered products and technologies, holding leadership positions in the HVAC, detection and measurement, and engineered solutions markets. Based in Charlotte, North Carolina, SPX Corporation had approximately $1.4 billion in annual revenue in 2018 and approximately 4,000 employees in about 17 countries. SPX Corporation is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com/
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