Summary
Emerson Electric Co. (EMR) has officially completed the sale of its network power systems business, as announced on November 30, 2016, for $4 billion in cash. This divestiture is a significant step in the company's strategic portfolio repositioning. The buyer is a group of entities controlled by affiliates of Platinum Equity Advisors, LLC. While the primary cash consideration is substantial, Emerson will also retain a subordinated interest in future distributions, contingent on the equity holders achieving a certain initial investment return.
Key Highlights
- 1Completion of the sale of Emerson's network power systems business for $4 billion cash, subject to post-closing adjustments.
- 2The transaction was finalized on November 30, 2016, with the buyer being entities controlled by affiliates of Platinum Equity Advisors, LLC.
- 3Emerson will retain a subordinated interest in distributions, dependent on the buyer's equity holders receiving a threshold return on their investment.
- 4This divestiture aligns with Emerson's previously announced strategic portfolio repositioning efforts.
- 5Unaudited pro forma consolidated balance sheet as of September 30, 2016, is provided as Exhibit 99.2.
- 6Results from the divested network power systems business were already reported as discontinued operations in prior SEC filings.