SPX Flow Inc has announced plans to narrow its strategic focus on process solutions and divest its Power and Energy business.

Power and Energy specialises in mission critical severe duty pumps, valves, filtration products and aftermarket parts and services for energy and power customers. The brands included in the divesture process are M&J Valve, ClydeUnion Pumps, S&N Pumps, Copes-Vulcan, Dollinger, Plenty, Airpel and GD Engineering. The business has annual revenues of around US$500 million and is headed up by president José Larios.

SPX Flow intends to focus its growth strategy on building a premier process solutions enterprise around its current Food and Beverage segment, Industrial segment and Bran+Luebbe metering pumps product line.

“After a thorough strategic review of our product lines, core competencies and customer segments, we have determined that there are nuances in the value proposition to customers in highly specific process applications as compared to flow control applications,” said Marc Michael, president and CEO of SPX Flow. “To best serve customers in both these areas, we have chosen to narrow our strategic focus on differentiated process technologies and to pursue a divestiture of our Power and Energy business.”

“By divesting Power and Energy, we will reduce our exposure to cyclical energy markets and devote our full attention on building a premier process solutions enterprise with high quality, recurring revenue streams, mid-teens EBITDA margins and double-digit return on invested capital,” added Michael.

With annual revenue of around US$1.6 billion, Process Solutions is comprised of the current Food and Beverage and Industrial reportable segments and the Bran+Luebbe metering pump product line. Brands include APV, Waukesha-Cherry Burrell, Lightnin, Gerstenberg Schroeder, Seital, Bran+Luebbe, Hankinson, Power Team and Johnson Pump. These brands primarily serve the sanitary and industrial markets, with a concentration in food and beverage, chemical, pharmaceutical and general industrial markets.

Dwight Gibson, currently president of Food and Beverage, will lead one combined commercial team. He will work closely with Ty Jeffers, vice president of Global Manufacturing and Supply Chain, to optimize and leverage the company’s lean approach, “Pathway to Excellence”, and to modernise factories and create capacity for growth.