As Emerson Electric Co focuses on its high-growth business, the maker of factory automation equipment, said it would sell two units for a total of $5.2 billion.
While Japan's Nidec Corp would buy Emerson’s motors and electric power division for $1.2 billion, the company said on Tuesday that it would sell its network power unit to investment firm Platinum Equity. The deal has been announced to be worth $4 billion.
This announcement is seen as a part of Chief Executive Officer David Farr strategy to unload less-profitable businesses.
Farr said last year he wouldn’t want to “put that on my tombstone” while referring to the network power unit, one that he had built since becoming CEO in 2000.
“By selling Network Power to Platinum Equity, we have achieved a successful result for our shareholders as part of our plan to streamline Emerson to create a more focused company,” Farr said in the statement.
"Strategic alternatives" for its motors and drives, power generation and remaining storage units, the St. Louis, Missouri-based Emerson had said last year and announced that it planned to spin off its network power unit.
The company said that the network power unit will continue to be led by Scott Barbour, executive vice president of Emerson and business leader for the network power division as Emerson plans to retain a subordinated interest in the network power unit.
Hurt by slowing demand in its end markets that it blamed on uncertain global economic conditions, the company also reported lower-than-expected quarterly revenue.
From $564 million, or 84 cents per share, a year earlier, in the third quarter ended June 30, net earnings attributable to Emerson's common shareholders fell to $479 million, or 74 cents per share. Revenue fell 7 percent to $5.13 billion.
The company said on Tuesday that the fall reflected “the continuation of challenging demand conditions in our key served markets in addition to an environment of global economic uncertainty.”
A controlling stake in Emerson’s embedded computing and power business, now known as Artesyn Embedded Technologies was bought by Platinum Equity, a private-equity firm in Beverly Hills, California, founded by Tom Gores.
Emerson said in a statement that it has targeted to complete the sale by the end of the year.
A controlling stake in Emerson’s embedded computing and power business, now known as Artesyn Embedded Technologies was bought by Platinum Equity, a private-equity firm in Beverly Hills, California, founded by Tom Gores.
While the company received legal advice from Davis Polk & Wardwell LLP, Bankers from J.P. Morgan Securities LLC and Centerview Partners LLC advised Emerson.
(Source:www.reuters.com & www.bloomberg.com)
While Japan's Nidec Corp would buy Emerson’s motors and electric power division for $1.2 billion, the company said on Tuesday that it would sell its network power unit to investment firm Platinum Equity. The deal has been announced to be worth $4 billion.
This announcement is seen as a part of Chief Executive Officer David Farr strategy to unload less-profitable businesses.
Farr said last year he wouldn’t want to “put that on my tombstone” while referring to the network power unit, one that he had built since becoming CEO in 2000.
“By selling Network Power to Platinum Equity, we have achieved a successful result for our shareholders as part of our plan to streamline Emerson to create a more focused company,” Farr said in the statement.
"Strategic alternatives" for its motors and drives, power generation and remaining storage units, the St. Louis, Missouri-based Emerson had said last year and announced that it planned to spin off its network power unit.
The company said that the network power unit will continue to be led by Scott Barbour, executive vice president of Emerson and business leader for the network power division as Emerson plans to retain a subordinated interest in the network power unit.
Hurt by slowing demand in its end markets that it blamed on uncertain global economic conditions, the company also reported lower-than-expected quarterly revenue.
From $564 million, or 84 cents per share, a year earlier, in the third quarter ended June 30, net earnings attributable to Emerson's common shareholders fell to $479 million, or 74 cents per share. Revenue fell 7 percent to $5.13 billion.
The company said on Tuesday that the fall reflected “the continuation of challenging demand conditions in our key served markets in addition to an environment of global economic uncertainty.”
A controlling stake in Emerson’s embedded computing and power business, now known as Artesyn Embedded Technologies was bought by Platinum Equity, a private-equity firm in Beverly Hills, California, founded by Tom Gores.
Emerson said in a statement that it has targeted to complete the sale by the end of the year.
A controlling stake in Emerson’s embedded computing and power business, now known as Artesyn Embedded Technologies was bought by Platinum Equity, a private-equity firm in Beverly Hills, California, founded by Tom Gores.
While the company received legal advice from Davis Polk & Wardwell LLP, Bankers from J.P. Morgan Securities LLC and Centerview Partners LLC advised Emerson.
(Source:www.reuters.com & www.bloomberg.com)
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