ST. LOUIS—Emerson (NYSE: EMR) today announced that it has closed the sale of a 51 percent stake in its embedded computing and power business to Platinum Equity. Emerson retains a 49 percent non-controlling interest in the business, which now operates as an independent company.
As announced in August, this transaction allows Emerson to focus on its core businesses while also participating in the upside from repositioning the business as it focuses on growth under Platinum Equity’s management. The transaction closed earlier than planned due to the timing of regulatory approvals, which will result in approximately $175 million less sales and approximately $25 million less pretax earnings in the first quarter and full year 2014 than previously expected.
Emerson (NYSE: EMR), based in St. Louis, Missouri (USA), is a global leader in bringing technology and engineering together to provide innovative solutions for customers in industrial, commercial, and consumer markets around the world. The company is comprised of five business segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. Sales in fiscal 2013 were $24.7 billion. For more information, visit www.Emerson.com.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed more than 150 acquisitions.
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 our ability to complete the embedded computing and power transaction, 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 the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC.