Emerson selling power transmission unit for $1.44 billion

Emerson Electric Co. has agreed to sell its Power Transmission Solutions business to Wisconsin-based Regal Beloit Corp. for $1.44 billion. David Farr, Emerson’s chairman and CEO, said the division didn’t align with the “strategic direction” of the St. Louis-based company any longer.

Based in Florence, Ky., the division employs more than 3,000 people and reported revenue of about $600 million in 2014.

Emerson said proceeds from the sale will be used for a stock buyback. The $1.44 billion price tag includes $1.4 billion in cash.

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