Private equity funds managed by Blackstone have completed the previously announced acquisition of a majority (60%) stake in Emerson’s Climate Technologies business in a transaction valuing the business at $14.0 billion.
Private equity funds managed by Blackstone have completed the previously announced acquisition of a majority (60%) stake in Emerson’s Climate Technologies business in a transaction valuing the business at $14.0 billion.
Under the terms of the transaction, Emerson received upfront, pre-tax cash proceeds of approximately $9.7 billion at close, an increase of $0.2 billion from when the transaction was announced given Blackstone’s decision to purchase an additional 5% of the common equity. Emerson’s continuing investment in the business is composed of a seller’s note with a face value of $2.25 billion and 40% non-controlling common equity ownership with a transaction value of $1.7 billion.
The new standalone business will be named Copeland and will focus on serving the global HVACR market. Its product portfolio includes compressors, controls, thermostats, valves, software and monitoring solutions for residential, commercial and industrial customers. Copeland had fiscal 2022 net sales of $5.0 billion.
