Muskegon, Mich. and Stamford, Conn.— SPX Corp. and General Signal Corp. agreed July 20 to have SPX acquire General Signal for about $2 billion in cash and SPX shares valued at $45 per share. SPX will also assume about $335 million of General Signal's net debt.

The acquisition will create a $2.5 billion industrial and vehicle solutions company, including SPX's vehicle businesses and General Signal's 15 companies, one in the vehicle components sector and 14 in process equipment, electrical products, and network technology. These include Lindberg, DeZurik, GS Laboratory Equipment, Kayex, Lightnin, Stock Equipment Co., Dielectric Communications, Edwards Systems Technology, GFI Genfare, GS Networks, Waukesha Electric Systems, and EGS Electrical Group, a joint venture with Emerson Electric.

SPX plans improve General Signal's performance by eliminating duplicate costs, adopting operating efficiencies, enhancing productivity, and applying SPX's pay-for-performance program. SPX expects to save $55-60 million in the first year.

The deal is expected to close during 4Q98.