Emerson To Sell Majority Stake In Climate Technologies Business - Quick Facts

(RTTNews) - Emerson (EMR) announced a definitive agreement under which it will sell a majority stake in its Climate Technologies business to private equity funds managed by Blackstone in a deal valuing Climate Technologies at $14.0 billion. Emerson will receive upfront, pre-tax cash proceeds of approximately $9.5 billion while retaining a non-controlling ownership interest in a new standalone JV. Emerson will be right sizing its corporate and platform cost structure and will sell ownership of its St. Louis, Missouri campus to the joint venture.

Emerson plans to invest the proceeds in strategic M&A to strengthen and diversify its automation portfolio in four targeted adjacent markets. The company also expects to continue to return cash to shareholders through share repurchases, expected to be approximately $2 billion in 2023, and its dividend.