CLYDEUNION owner SPX has announced plans to spin off its flow division as a separate listed entity.
The split is expected to be completed within a year, with shares in the new business, currently called the Future Flow Company, to be 100 per cent owned by existing SPX shareholders.
Glasgow-based ClydeUnion, which has its main facility at Cathcart, was highlighted as one of the key brands of the new flow company, which will supply pumps, valves, mixers and other equipment to the energy, food and drink and industrial markets.
SPX will retain its infrastructure technology, engineered power equipment and heating, ventilation and air conditioning divisions.
Chris Kearney, current SPX chief executive, will head the flow business. He said: "We believe the spin-off will provide both companies greater flexibility to focus on and pursue their respective growth strategies, enabling them to create significant value for shareholders, customers and employees."
"The Future Flow Company will focus on expanding its product offering through innovation, commercial and strategic initiatives as well as increasing its customer service capabilities in the aftermarket."
SPX, which has its headquarters in Charlotte, North Carolina, bought SPX for about £750 million from Jim McColl's Clyde Blowers in 2011, also said its third-quarter revenue had increased 1.1 per cent to $1.16 billion (£720m). Net income before tax rose from $63.9m to $64.5m. Mr Kearney said there had been strong bookings in the quarter in the thermal and power transformer segments, but fewer than expected large orders in the flow division.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article