Emerson to sell 51% stake in embedded and power biz
Emerson has decided to sell 51 percent stake in its embedded computing and power business to Platinum Equity. Emerson to receive approximately $300 million in cash and will retain a 49 percent noncontrolling interest in the business, which will operate as an independent company.
“After extensive consideration, we have found an arrangement to exit this business in a manner that maximizes its value for our shareholders,” said Emerson Chairman and Chief Executive Officer David N. Farr. “The embedded computing and power business is a technology leader in the industry it serves, but no longer fits strategically in our portfolio. The transaction with Platinum will allow us to immediately focus on our core businesses while also participating in the upside from repositioning the business as it focuses on growth as an independent company.”
"We have forged a strong partnership with Emerson, coming together in a way that will create success for everyone,” said Platinum Equity Chairman and Chief Executive Officer Tom Gores. “We will build on the foundation established under Emerson to further position the business as a strong and innovative competitor in the marketplace.”
"Platinum Equity worked closely with Emerson to craft a transaction solution customized to meet both Emerson’s needs and the needs of the business,” said Jacob Kotzubei, the partner at Platinum Equity who led the team pursuing this transaction. “We are excited to work with Emerson and the EC&P management team to help grow the business and reinforce its position as a premier provider of highly engineered customized power and embedded computing products.”