Emerson Completes Sale of Network Power to Platinum Equity
December 01 2016 - 8:15AM
Business Wire
Transaction closing marks another milestone in
the strategic portfolio repositioning process
Emerson (NYSE: EMR) today announced that it has completed the
sale of its Network Power business to Platinum Equity and a group
of co-investors. Emerson received proceeds of $4 billion and
retained a subordinated interest in the business.
“The completion of this transaction is an important step in our
strategic portfolio repositioning as we work to streamline the
company and create opportunities for long-term growth and drive
value for shareholders,” said David N. Farr, Chairman and Chief
Executive Officer of Emerson. “With Network Power under the
Platinum Equity umbrella, it is well positioned to achieve its
long-term goals and succeed in the future.”
Platinum Equity Chairman and CEO Tom Gores said he is proud of
his firm’s strong relationship with Emerson and the commitment on
both sides to finding a solution that is good for Network Power
going forward.
“We appreciate Emerson’s trust and confidence in our ability to
execute,” said Mr. Gores. “This investment will be a cornerstone in
our portfolio and is a great fit for Platinum that plays right to
our strengths. We will deploy our full range of global operational
skills, financial resources and M&A capabilities to support the
company's growth and innovation."
Network Power is rebranding as Vertiv and will operate as a
stand-alone global enterprise in Platinum Equity’s portfolio.
Headquartered in Columbus, Ohio, the company 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. Emerson recently reported that the
Network Power business had sales of approximately $4.4 billion in
fiscal 2016.
About Emerson
Emerson (NYSE: EMR), headquartered in St. Louis, Missouri (USA),
is a global technology and engineering company providing innovative
solutions for customers in industrial, commercial, and residential
markets. Our Emerson Automation Solutions business helps process,
hybrid, and discrete manufacturers maximize production, protect
personnel and the environment while optimizing their energy and
operating costs. Our Emerson Commercial and Residential Solutions
business helps ensure human comfort and health, protect food
quality and safety, advance energy efficiency, and create
sustainable infrastructure. For more information visit
Emerson.com.
Forward-Looking and Cautionary Statements
Statements in this press release that are not strictly
historical may be “forward-looking” statements, which involve risks
and uncertainties, and Emerson undertakes no obligation to update
any such statements to reflect later developments. These risks and
uncertainties include the Company’s ability to successfully
complete on the terms and conditions contemplated, and the
financial impact of, its strategic portfolio repositioning actions,
as well as economic and currency conditions, market demand,
pricing, protection of intellectual property, and competitive and
technological factors, among others, as set forth in Emerson’s most
recent Annual Report on Form 10-K and subsequent reports filed with
the SEC.
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For EmersonMark Polzin, 314-982-1758
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