Emerson to Sell Majority Stake in $14 Billion Climate Tech Unit to Blackstone | EMR Message Board Posts


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Msg  126 of 143  at  10/31/2022 11:22:39 AM  by

jerrykrause


Emerson to Sell Majority Stake in $14 Billion Climate Tech Unit to Blackstone

Emerson to Sell Majority Stake in $14 Billion Climate Tech Unit to Blackstone

 

Emerson Electric has reached a deal to sell a majority stake in its climate-technologies business to private-equity giant Blackstone, valuing the unit at $14 billion.

The deal, announced Monday, sees Blackstone (ticker: BX) take a 55% stake in the unit, with Emerson (EMR) receiving $9.5 billion in cash and a note of $2.25 billion, while retaining a 45% stake, Emerson said in a press release . Emerson's climate tech unit sells compressors and other heating, ventilation and air conditioning technologies for commercial and residential uses.

The cash part of the deal will be funded by $5.5 billion of debt financing and $4.4 billion equity contribution from Blackstone.

The climate technologies business will be structured as a joint venture between Emerson and Blackstone until a potential sale or IPO, the companies said.

Emerson has reshuffled its portfolio recently and in August agreed to sell its InSinkErator food-waste disposal business to Whirlpool for $3 billion.

Separately, Emerson reported fiscal fourth quarter and full year earnings Monday. It posted adjusted earnings per share of $1.53 for the quarter, while revenue rose 8% from the year-ago period to $5.4 billion. Full-year net sales also rose 8%, to $19.6 billion.

Shares in Emerson have climbed close to 12% since reports of talks with Blackstone emerged earlier in October. The stock was close to 3% higher in premarket trading.

 


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