UPDATE 2-SPX to sell auto service business to Bosch

* Deal for $1.15 billion

* SPX to focus on flow technology segment

* Withdraws 2012 forecast

Jan 24 (Reuters) - Diversified manufacturer SPX Corp plans to sell its automotive service business to Germany's Robert Bosch GmbH for $1.15 billion in cash as it looks to focus on its core flow technology segment.

"Flow technology is the foundation of our company and we now expect that segment to represent more than 50 percent of our revenue going forward," SPX CEO Chris Kearney said in a statement.

The company, whose flow technology segment makes pumps, mixers and heat exchangers, also withdrew its recently issued forecast for 2012 and said it was reassessing its global initiatives and cost structure.

The service solutions business, which accounts for about 15 percent of SPX's total revenue, makes diagnostic and service tools, workshop equipment and software for the global automotive aftermarket. It is expected to generate revenue of $920 million in 2011.

Separately, Bosch, the world's largest car parts maker, said the acquisition would expand its market presence in the North American automotive diagnostics business.

Bosch, like other global players in the auto parts markets, wants to focus on more profitable high-tech components, leaving production of more mainstream parts to rivals with a lower cost base.

SPX will record an after-tax book gain of about $450 million, or $8.65 a share, following the completion of the deal.

The U.S. manufacturer also said it plans to use at least $350 million for share repurchases and about $350 million to repay debt.

Last week, Charlotte, North Carolina-based SPX issued a weaker-than-expected 2012 profit target and warned that the year was getting off to a rough start.

Credit Suisse Securities LLC acted as a financial adviser to SPX.