Emerson to Sell Rest of Former Climate Technologies Business to Blackstone for $3.5 Billion

By Paul Ziobro

Emerson Electric is selling the its remaining stake in its former climate technologies business for around $3.5 billion.

Funds managed by the private-equity firm Blackstone, which in May completed the acquisition of a 55% stake in unit, valuing it at $14 billion, has agreed to purchase Emerson's 40% common equity ownership in the Copeland joint venture. A wholly owned subsidiary of the Abu Dhabi Investment Authority and the Singapore wealth fund GIC will invest alongside Blackstone as part of the deal.

Copeland, meanwhile, is repurchasing the sellers note.

Emerson struck the original deal to sell a majority stake in the business, which sells compressors and other HVAC products, with Blackstone in October 2022.

Earlier this year, Blackstone granted ownership stakes to the roughly 18,000 employees of Copeland, a move by the private-equity firm to give rank-and-file employees a piece of the business.

Emerson stands to receive $3.4 billion in pre-tax cash proceeds from the sale, which is expected to close in the second half of this year. It will use about $2.9 billion to pay down debt.

Write to Paul Ziobro at paul.ziobro@wsj.com

(END) Dow Jones Newswires

June 06, 2024 16:47 ET (20:47 GMT)

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