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US: Emerson’s $5.2bn asset sale paves the way for new acquisitions

By  |  August 2, 2016
US: Emerson’s $5.2bn asset sale paves the way for new acquisitions

Emerson Electric Co. has taken the largest step in a year-old plan to overhaul its business, announcing two asset sales totaling $5.2 billion as it hunts for acquisitions to focus on industrial automation and consumer products.

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    Emerson announced on August 2 that it will sell its network-power division to Platinum Equity and other investors for $4 billion while keeping an undisclosed minority stake. Several hours earlier, the company said Japan’s Nidec Corp. agreed to pay $1.2 billion for two businesses that produce motors, drives and alternators.

    The motor, drive and alternators businesses that Emerson sold are France-based Leroy Somer Holding and UK based Control Techniques.

    The company’s next step is to expand the refocused company through acquisitions. After the sales of the network-power and industrial-motors operations, Emerson will seek to increase sales to $20 billion a year from about $16 billion, Chief Executive Officer David Farr said in May.

    Full Content: Bloomberg

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