(Bloomberg) -- Apollo Global Management LLC is nearing a deal to buy SPX Flow Inc.’s power and energy business, according to people familiar with the matter.

The private equity firm is in talks to buy the unit for $700 million, said one of the people, who asked not to be identified because the matter isn’t public. A deal could be announced in the coming days, this person said.

SPX Flow’s shares rose 3% to $48.07 at 12:35 p.m. in New York trading Friday, giving the company a market value of about $2.05 billion. The stock is up about 37% in the past year.

A final agreement hasn’t been reached and SPX Flow could still decide to keep the unit or sell it to another buyer, they said.

Apollo is set to prevail over other potential buyers including First Reserve, which a person familiar with the matter said in August could combine the SPX Flow unit with its Trillium Flow Technologies.

A representative for Apollo declined to comment. A representative for SPX Flow didn’t respond to requests for comment.

SPX Flow, based in Charlotte, North Carolina, announced in May that it was looking at options for the business. It hired BNP Paribas SA as a financial adviser and said it intended to focus on its other divisions.

Its power business manufacturers pumps, valves, filtration products and aftermarket parts under brands that include M&J Valve and ClydeUnion Pumps, for use in the energy industry, according to its website.

The company was spun off from SPX Corp. in 2015. Its remaining business units after a sale of its power and energy operations would include those focused on transporting liquids in the food and beverage sector, as well as industrial liquids and its Bran+Lubbe metering pump,

(Updates with share move in third pargraph.)

To contact the reporter on this story: Kiel Porter in Chicago at kporter17@bloomberg.net

To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Michael Hytha, Matthew Monks

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