WASHINGTON (Reuters) - The United Parcel Service (UPS) will pay up to a $45 million penalty for improperly valuing a business unit, the U.S. Securities and Exchange Commission (SEC) said on Friday.

The SEC said UPS misrepresented "its earnings because it failed to follow generally accepted accounting principles (GAAP) in valuing one of its worst performing businesses."

(Reporting by Doina Chiacu)