FMC Technologies declares dividend of John Bean Technologies common stock as part of spinoff

By Lisa Kerner

Charlotte, N.C., July 14 - The board of directors of FMC Technologies, Inc. approved the spinoff of John Bean Technologies Corp. by declaring a tax-free dividend of John Bean common stock.

FMC Technologies said the dividend of 0.216 shares of John Bean common stock will be distributed at the close of business on July 31 to FM Technologies shareholders of record as of July 22.

In addition, John Bean will pay a cash dividend of approximately $175 million to FMC Technologies on July 31, according to an FMC Technologies news release.

In October 2007, FMC Technologies announced it would combine its FoodTech and Airport Systems businesses into a separate, publicly traded company.

FMC Technologies' board also approved a $95 million increase in its stock repurchase authorization to be funded through the dividend payment from John Bean. The remaining proceeds of the cash dividend will be used to retire existing debt, FMC Technologies said.

A "when issued" public market for FMC Technologies and John Bean is expected to begin on or about Friday on the New York Stock Exchange under the symbols "FTI WI" and "JBT WI." "FTI WI" will exclude the value of the dividend of John Bean, the release said.

FMC Technologies shares will also trade "regular way" under the symbol "FTI" and include the dividend of John Bean.

Both companies will trade regular way following the distribution of their common stock, it was reported in the release.

"Completing the dividend and spinoff of our non-energy businesses will position FMC Technologies and John Bean to realize their potential underlying value by allowing each to focus on its core business," FMC Technologies president and chief executive officer Peter Kinnear stated in the release.

Houston-based FMC Technologies designs, manufactures and services machinery and systems for the energy industry.

John Bean is a global technology solutions provider to high-value segments of the food processing and air transportation industries.

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