Summary
Emerson Electric Co. announced on August 2, 2016, a significant divestiture: the sale of its Leroy Somer and Control Techniques businesses to Nidec Corporation for $1.2 billion. This transaction, structured as an asset and stock purchase, includes cash and the assumption of certain post-retirement liabilities by the buyer. The sale represents a strategic move by Emerson to reposition its business portfolio, a process that has been ongoing. Investors should note that the deal is subject to customary closing conditions, including regulatory approvals such as Hart-Scott-Rodino clearance and approvals from French and other foreign authorities.
Key Highlights
- 1Emerson Electric Co. is selling its Leroy Somer and Control Techniques businesses.
- 2The sale price is $1.2 billion, comprising cash and assumption of post-retirement liabilities.
- 3The buyer is Nidec Corporation.
- 4This divestiture is part of Emerson's broader strategy of portfolio repositioning.
- 5The transaction is subject to customary closing conditions, including regulatory approvals (e.g., Hart-Scott-Rodino, French Ministry for Economy and Finance, other foreign antitrust authorities).
- 6The agreement includes standard representations, warranties, covenants, and indemnification clauses.
- 7The press release regarding this transaction was issued on August 2, 2016.