Emerson to Sell Network Power, Leroy-Somer, and Control Techniques
Transactions are part of company’s strategic repositioning
ST. LOUIS — Emerson announced an agreement to sell Network Power to Platinum Equity and a group of co-investors. The transaction is valued at $4 billion and Emerson will retain a subordinated interest in Network Power. The sale is expected to close by Dec. 31, 2016, subject to regulatory approvals. Emerson also announced it has agreed to sell its Leroy-Somer and Control Techniques business units to Nidec Corp. This transaction is valued at $1.2 billion and is expected to close by Dec. 31, 2016, subject to regulatory approvals.
Regarding the Network Power transaction, David N. Farr, chairman and chief executive officer of Emerson, said, “This agreement marks a major milestone in the strategic portfolio repositioning we announced last June. By selling Network Power to Platinum Equity, we have achieved a successful result for our shareholders as part of our plan to streamline Emerson to create a more focused company with significant opportunities for growth and profitability in our core served markets. We believe Network Power has a bright future ahead and Platinum Equity is well-positioned to help the company continue to thrive and realize its full potential.”