Emerson (St. Louis, Mo.; www.emerson.com) has announced the divestment of three of its business units: Network Power, Leroy-Somer and Control Techniques.
Emerson will sell Network Power to Platinum Equity and a group of co-investors. The transaction is valued at $4 billion and Emerson will retain a subordinated interest in Network Power. The sale of Network Power is expected to close by December 31, 2016, subject to customary regulatory approvals. , Network Power, based in Columbus, Ohio is a leading provider of thermal management, A/C and D/C power, transfer switches, services and information management systems for the data center and telecommunications industries.
The company has also agreed to sell its Leroy-Somer and Control Techniques business units to Nidec Corp. The transaction is valued at $1.2 billion, and is expected to close by December 31, 2016, subject to regulatory approvals. The proceeds will strengthen Emerson’s balance sheet providing increased capacity for strategic investment.
Leroy-Somer, headquartered in France, was acquired by Emerson in 1990. Control Techniques has been an Emerson business since 1995, and is based in the United Kingdom. For more than 30 years, Leroy-Somer and Control Techniques have been leading manufacturers and suppliers of alternators, drives, and motors, with approximately 9,500 employees around the world. The two businesses had combined FY 2015 revenue of approximately $1.7 billion.