ST. LOUIS--Emerson (NYSE: EMR) announced that the sale of its Leroy-Somer and Control Techniques businesses to Nidec Corporation has been completed for a purchase price of $1.2 billion. The deal strengthens Emerson’s balance sheet and increases the company’s capacity for investment.
“This transaction marks another step in our strategic portfolio repositioning to align our businesses for long-term growth,” said Chairman and Chief Executive Officer David N. Farr. “With the sales of Leroy-Somer, Control Techniques and Network Power, we have further strengthened our balance sheet so we can continue to acquire valuable assets that enhance the ability of our global business platforms to serve our customers.”
Leroy-Somer, based in France, and Control Techniques, based the United Kingdom, have approximately 9,500 employees around the world. For more than 30 years, they have been leading manufacturers and suppliers of alternators, drives, and motors, with a combined FY 2015 revenue of approximately $1.7 billion.
Emerson (NYSE: EMR), headquartered in St. Louis, Missouri (USA), is a global technology and engineering company providing innovative solutions for customers in industrial, commercial, and residential markets. Our Emerson Automation Solutions business helps process, hybrid, and discrete manufacturers maximize production, protect personnel and the environment while optimizing their energy and operating costs. Our Emerson Commercial and Residential Solutions business helps ensure human comfort and health, protect food quality and safety, advance energy efficiency, and create sustainable infrastructure. For more information visit Emerson.com.
Forward-Looking and Cautionary Statements
Statements in this press release that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the Company’s ability to successfully complete on the terms and conditions contemplated, and the financial impact of, its strategic portfolio repositioning actions, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, and competitive and technological factors, among others, as set forth in Emerson’s most recent Annual Report on Form 10-K and subsequent reports filed with the SEC.