USA: The Emerson Climate Technologies business is to be rebranded Copeland following the completion of the acquisition of a majority stake in the business by private equity company Blackstone.
Emerson will retain 40% common equity ownership in the new business and receive approximately $9.7bn in upfront, pre-tax cash proceeds and $2.25bn in seller’s notes. The transaction values the business at $14bn.
The new standalone business will be named Copeland, after its compressor brand, a move which Blackstone says builds on the brand’s “100-year legacy, global recognition and influence across the HVACR industry”.
The acquisition includes Alco valves and the entire portfolio of products and services across all HVAC and refrigeration end-markets, representing revenues of around $5bn.
In a statement Blackstone says it intends to extend the company’s leadership position in the industry and develop new and integrated climate technology solutions. In particular it sees the company playing “a key role” in improving the energy efficiency of heating and cooling solutions, pointing to “the rapidly growing market for electric heat pumps and climate-friendly refrigerants”.
“We are pleased to complete this significant transaction, an important milestone in Emerson’s portfolio transformation into a cohesive global automation leader,” said Lal Karsanbhai, President and Chief Executive Officer of Emerson.
Explaining the deal, Emerson president and CEO Lal Karsanbhai said: “The upfront proceeds from this transaction allow Emerson to advance our portfolio in attractive, higher-growth automation markets, while our remaining non-controlling investment enables Emerson to benefit from Copeland’s future upside under Blackstone’s ownership, until we exit the business.”
Copeland will continue to operate from St Louis, while maintaining a global footprint to serve customers in Europe, Latin America, Asia, Middle East and Africa.
Emerson’s $500m acquisition of the Copeland Corporation in 1986 was, at the time, its biggest ever acquisition. Then based in Pittsburgh, Copeland was the USA’s biggest producer of refrigeration and air conditioning compressors.
Emerson to sell majority stake in Climate Technologies – 31 October 2022
USA: Emerson is to sell a majority stake in its Climate Technologies business to private equity funds managed by Blackstone in a transaction valued at $14bn. Read more…