Emerson (NYSE: EMR), headquartered in St. Louis, has announced a definitive agreement to sell its remaining 40% interest in the Copeland joint venture to Blackstone for approximately $3.5 billion. The transaction, which will net Emerson $3.4 billion in pre-tax cash proceeds, is a strategic move towards simplifying Emerson’s portfolio and focusing on its core automation markets. CEO Lal Karsanbhai emphasized that this divestiture enhances Emerson’s focus on high-growth automation sectors. The deal has been approved unanimously by Emerson’s board and is expected to close in the second half of 2024, subject to regulatory approval. Blackstone, along with co-investors including ADIA and GIC, expressed strong enthusiasm for Copeland’s future growth, emphasizing its role in energy-efficient heating and cooling solutions. This transaction also includes financial advisory services from top firms such as Goldman Sachs, Barclays, and RBC Capital Markets. Emerson plans to use the after-tax proceeds of $2.9 billion to retire existing debt.
Private Equity, Automation, Heating and Cooling Technology,United States, Abu Dhabi
Emerson Announces Sale of Remaining Interests in Copeland to Blackstone