Acquisition expands Emerson's factory
automation served market by $9
billion and enhances exposure to key growth markets in
discrete and hybrid
ST.
LOUIS, Aug. 17, 2023 /PRNewswire/ -- Emerson
(NYSE: EMR) today announced a definitive agreement to acquire Afag
Holding AG ("Afag"), an innovative leader in electric linear
motion, feeding and handling automation solutions.
Headquartered in Zell, Switzerland, Afag brings state-of-the-art
technology and innovation to Emerson. The transaction will enhance
Emerson's capabilities in factory automation, one of the Company's
four priority adjacencies, and create a leading motion portfolio
combining Afag's electric linear motion solutions with Emerson's
pneumatic motion technology. Afag serves customers in attractive,
growing end segments including battery manufacturing, automotive,
packaging, medical, life sciences and electronics. The electric
linear motion segment expands Emerson's served market by more than
$9 billion and is expected to grow
mid-single digits annually, supporting Emerson's long-term,
profitable organic growth.
"Afag brings exciting technology that will enable Emerson to
accelerate growth in our existing $900
million factory automation business," said Ram Krishnan,
chief operating officer of Emerson. "As discrete and hybrid
customers continue to accelerate electrification across their
manufacturing processes, Afag's technology is ideally suited to
provide improved energy efficiency and performance gains. We look
forward to combining Afag's motion capabilities with our existing
pneumatic leadership, creating a unique and differentiated solution
for our customers. Afag and its employees will play an important
role in enhancing Emerson's strength and innovation in factory
automation."
"We are excited to join Emerson and build on its existing
factory automation leadership, while further expanding our global
reach," said Adrian Fuchser, chief
executive officer of Afag. "Our customers rely on Afag for
essential, customized systems and we are energized by this
opportunity to create a more comprehensive and holistic solution
for their motion needs. We share Emerson's vision of providing
complete solutions in essential industries and we look forward to
driving continued success as part of Emerson."
The transaction is expected to close by the end of Emerson's
fiscal 2023, subject to customary closing conditions, including
receipt of regulatory approvals. Terms of the transaction were not
disclosed. Afag will be reported in Emerson's Discrete Automation
segment.
For the transaction, Bryan Cave Leighton Paisner LLP is serving
as legal advisor to Emerson.
About Emerson
Emerson (NYSE: EMR) is a global technology and software company
providing innovative solutions for the world's essential
industries. Through its leading automation portfolio, including its
majority stake in AspenTech, Emerson helps hybrid, process and
discrete manufacturers optimize operations, protect personnel,
reduce emissions and achieve their sustainability goals. 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, the proposed National Instruments transaction,
the scope, duration and ultimate impacts of the COVID-19 pandemic
and the Russia-Ukraine conflict, as well as economic and
currency conditions, market demand, including related to the
pandemic and oil and gas price declines and volatility, pricing,
protection of intellectual property, cybersecurity, tariffs,
competitive and technological factors, inflation, among others, as
set forth in the Company's most recent Annual Report on Form 10-K
and subsequent reports filed with the SEC.
Contacts
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Kaufman / Greg Klassen
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(212)
355-4449
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SOURCE Emerson