Emerson selling units for $5.2 billion

Emerson said Tuesday that it had reached agreements to sell its Network Power, Leroy-Somer and Control Techniques businesses for a combined $5.2 billion.

Investment firm Platinum Equity and a group of co-investors will buy Network Power for $4 billion in a transaction that’s expected to close by Dec. 31. Emerson will retain a subordinated interest in Network Power.

Japan’s Nidec Corp. will buy the Leroy-Somer and Control Techniques units for $1.2 billion. That transaction is also expected to close by the end of the year.

Emerson said previously that it would make significant divestitures by September 2016 to streamline the Ferguson-based company, including a possible spin off or sale of Network Power and sales within its motors and drives, power generation and storage businesses. The moves, designed to focus the firm on areas with growth potential like process management and industrial automation, could shrink the company by about $8 billion in annual sales.

Read more: St. Louis Business Journal


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