CHARLOTTE, NC, Nov. 01, 2022 (GLOBE NEWSWIRE) — SPX Technologies, Inc. (“SPX Technologies” or “SPX”) (NYSE:SPXC) announced today that it has three wholly owned subsidiaries (“the Subsidiaries”) , which hold asbestos liabilities and certain assets, including related insurance assets, to Canvas Holdco LLC (“Canvas”), a company owned by a joint venture of Global Risk Capital LLC and a subsidiary of Premia Holdings Ltd. was incorporated Through the transaction, SPX contributed $138.8 million in cash to the cash funded subsidiaries; while Canvas made an $8 million capital contribution to the subsidiaries. SPX expects the divestiture to result in an annualized adjusted EPS benefit of $0.08 to $0.10 beginning in 2023.

Gene Lowe, President and Chief Executive Officer of SPX, stated, “I am very pleased with this transaction, which represents another step on our value creation journey. Over the past seven years, SPX has successfully executed our value creation initiatives, built our core platforms, exited non-strategic businesses, and reduced complexity and risk. The divestment of these legacy assets further strengthens and streamlines our business and provides our investors with greater long-term financial security as it further simplifies our business model, enhances our cash generation and frees resources to focus on accelerating organic and inorganic growth. “

Transaction Summary
Canvas has taken on the operational management of the subsidiaries, including administering all asbestos claims and collecting reimbursements from existing insurance policies.

As a result of the transaction, all asbestos liabilities and related insurance assets will be excluded from SPX’s year-end 2022 consolidated balance sheet. The divestment will result in an estimated one-time loss to be recognized in the fourth quarter of 2022 and reclassified from adjusted…