PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

Blackstone to acquire majority stake in Emerson’s Climate Technologies in deal worth $14bn

Private equity funds managed by Blackstone are to acquire Emerson’s Climate Technologies in a transaction valuing the business at $14.0 billion. 

Private equity funds managed by Blackstone are to acquire Emerson’s Climate Technologies in a transaction valuing the business at $14.0 billion. 

Emerson will receive upfront, pre-tax cash proceeds of approximately $9.5 billion and a note of $2.25 billion at close and retain 45% common equity ownership of the new standalone Climate Technologies business, which will be structured as a joint venture between Emerson and Blackstone, until its potential sale or IPO. 

The cash consideration will be funded by $5.5 billion of fully committed debt financing ($6.2 billion inclusive of an unfunded ABL facility) and $4.4 billion of equity contribution from Blackstone. A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and GIC will invest alongside Blackstone as part of the transaction.

The standalone Climate Technologies business includes the Copeland compressor business and the entire portfolio of products and services across all HVAC and refrigeration end-markets, representing approximately $5.0 billion of fiscal 2022 sales.

Climate Technologies had fiscal 2022 net sales of $5.0 billion, pre-tax earnings of $1.0 billion and EBITDA, including standalone costs, of $1.1 billion.

The transaction, which has been unanimously approved by Emerson’s Board of Directors, is expected to close in the first half of the calendar year 2023, subject to regulatory approvals and customary closing conditions.

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured