EMR - Blackstone Emerson Electric Strike $14 Billion Buyout Deal - WSJ

• In a bid to streamline its business and expand its technology and automation offerings, Emerson Electric ( NYSE: EMR ) is selling 55% stake in its climate-technologies business to Blackstone ( NYSE: BX ), a private equity player, that would value the segment at $14B including debt, WSJ reported .
• Blackstone and its co-investors would contribute $4.4 billion in equity toward the deal, which would be supplemented by $5.5 billion of debt financing. Equity that Emerson is rolling over along with a $2.25 billion seller note would account for the remainder of the price tag.
• The Climate Technologies segment, which comprises the majority of Emerson’s commercial-and-residential solutions provides products and services for many areas of the climate control industry, including residential heating and cooling, commercial air conditioning, commercial and industrial refrigeration, and cold chain management. The unit had about $5B in sales during fiscal 2022 and derives majority of its sales from are in the Americas.
• Emerson ( EMR ) has been reshuffling its business mix through divestitures after merging its industrial software business with Aspen Technology earlier this year.
• Bloomberg earlier reported this month that Emerson ( EMR ) was in talks with Blackstone ( BX ) to sell part of its commercial and residential solutions business for $5 billion to $10 billion .
• Blackstone said it believes the business it is buying would benefit from a shift to more energy-efficient heating and cooling technologies as businesses and consumers upgrade their systems to be more climate friendly and cost-effective.
• Emerson ( EMR ) plans on Monday to report its fourth-quarter and full-year earnings, which were originally scheduled for Nov. 2.
• EMR in trading 1.2% higher in premarket.

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