8-KMaterial AgreementsExhibits & Filings

EMERSON ELECTRIC CO 8-K Report, Material Agreement (Jun 6, 2024)

Filed June 6, 2024For Securities:EMR

Summary

Emerson Electric Co. (EMR) has filed an 8-K report detailing significant divestiture activities concerning its interest in Copeland. The company has entered into two material definitive agreements: a Note Purchase Agreement (NPA) and a Unit Purchase Agreement (UPA). These agreements collectively represent a substantial transaction that will see Emerson divest its remaining 40% equity interest in Copeland to BCP Emerald Aggregator L.P., an affiliate of Blackstone Inc. This transaction is structured to generate significant cash proceeds for Emerson. Specifically, the UPA transaction is expected to yield $1.5 billion in cash from the sale of Emerson's equity interest in Copeland, reducing its stake to zero. Concurrently, through the NPA, Emerson will receive an additional $1.9 billion in cash from the repurchase of senior unsecured notes by Issuer, a subsidiary of Copeland. The total cash inflow from these two transactions is anticipated to be approximately $3.4 billion. The consummation of these deals is subject to customary closing conditions, including regulatory approvals, with a target completion date by December 31, 2024.

Key Highlights

  • 1Emerson Electric Co. is selling its remaining 40% equity interest in Copeland to BCP Emerald Aggregator L.P.
  • 2The divestiture is structured through a Unit Purchase Agreement (UPA) and a Note Purchase Agreement (NPA).
  • 3Emerson expects to receive approximately $1.5 billion in cash from the sale of its equity interest in Copeland.
  • 4Emerson is set to receive an additional $1.9 billion in cash from the repurchase of senior unsecured notes.
  • 5The total expected cash proceeds from these transactions amount to approximately $3.4 billion.
  • 6The transactions are subject to customary closing conditions, including regulatory approvals.
  • 7The closing deadline for these transactions is set for December 31, 2024.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Emerson Electric's entry into material definitive agreements to sell its remaining 40% equity interest in Copeland and to receive cash proceeds from a related note repurchase.

Emerson Electric is expected to receive approximately $1.5 billion from the sale of its equity interest in Copeland and an additional $1.9 billion from the repurchase of senior unsecured notes, totaling approximately $3.4 billion in cash.

Emerson Electric is selling its stake in Copeland to BCP Emerald Aggregator L.P., which is described as a Delaware limited partnership formed by investment funds managed by affiliates of Blackstone Inc.

The completion of these transactions is subject to customary conditions, including the satisfaction or waiver of certain conditions, and the receipt of applicable regulatory approvals. The deals must also be consummated by December 31, 2024.