Emerson chairman and CEO, David Farr
Emerson has agreed to sell its Network Power business to Platinum Equity and a group of co-investors. As per the terms of the deal, the sale is valued at $US4 billion and Emerson will retain a subordinated interest in Network Power.
Network Power’s line of thermal management, A/C and D/C power, transfer switches, services and information management systems for the datacentre and telecommunications industries are included in this deal.
This sale will complete the year-long process of separation based on Emerson’s recent announcement to restructure its portfolio.
It also marks Emerson’s second divestiture to Platinum Equity in the last three years. In November 2013, Emerson sold a 51 per cent controlling stake in its embedded computing and power business, which Platinum Equity rebranded as Artesyn Embedded Technologies.
Emerson chairman and CEO, David Farr, said the agreement marks a significant step in the strategic portfolio repositioning it announced last June.
“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 with significant opportunities for growth and profitability in our core served markets.
“We believe Network Power has a bright future ahead and Platinum Equity is well-positioned to help the company continue to thrive and realise its full potential,” Farr said.
Platinum Equity chairman and CEO, Tom Gores, mentioned that both companies share a commitment to creating value, and it is an important investment in a business that will be a cornerstone in the portfolio.
"Emerson shares our commitment to creating value, and this plays to our core strengths. In addition to our capital resources, we will deploy our global operations skills to build on the foundation Emerson created and take this business to another level.”
The sale of Network Power is expected to close by December 31, 2016, subject to customary regulatory approvals.
Network Power will continue to be led by Scott Barbour, who has been its executive vice-president of Emerson and business leader for Network Power.
