Emerson sells Network Power to Platinum Equity
Emerson will sell Network Power to Platinum Equity and a group of co-investors. The transaction is valued at US$4bn and Emerson will retain a subordinated interest in Network Power. The sale of Network Power is expected to close by the end of 2016, subject to customary regulatory approvals.
“This agreement marks a major milestone in the strategic portfolio repositioning we announced last June,” said David N Farr, chairman and chief executive officer at Emerson. “By selling Network Power to Platinum Equity, we have achieved a successful result for our shareholders as part of our plan to streamline Emerson.”
“I’m very proud of the relationship and mutual trust that the Emerson and Platinum Equity teams have built with one another,” said Tom Gores, chairman and chief executive officer at Platinum Equity. “In addition to our capital resources, we will deploy our global operations skills to build on the foundation Emerson created.”
The proposed sale marks Emerson’s second divestiture to Platinum Equity in the last three years. In 2013, Emerson sold a 51% controlling stake in its embedded computing and power business, which Platinum Equity rebranded Artesyn Embedded Technologies.
Network Power will continue to be led by Scott Barbour, who has been executive vice president of Emerson and business leader for Network Power. Barbour said, “The work we’ve done at Network Power in recent years ensures we are well prepared for an ownership transition and have the right foundation in place to be successful.”
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