EMERSON ELECTRIC CO (EMR): M&A transaction — Emerson closes $14B sale of Climate Technologies to Blackstone; retains 40% stake in Copeland JV

EMERSON ELECTRIC CO

Received $9.7B cash upfront and $2.25B note (5% PIK interest) from Blackstone for majority stake.
Emerson holds 40% common equity in new JV Copeland; Blackstone holds 60% common + $2B convertible preferred.
Pro forma continuing ops net earnings for 6mo Mar 2023: $1.054B ($1.82 diluted EPS), down from as-reported $859M.
Proceeds expected to help fund pending $7.6B acquisition of National Instruments (NI), announced Apr 2023.
Pro forma balance sheet shows $11.7B cash; long-term debt of $8.2B unchanged.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

EMERSON ELECTRIC CO completed a disposition involving BCP Emerald Aggregator L.P. (affiliates of Blackstone Inc.) for $14.0 billion transaction (closed 2023-05-31).

Action: disposition
Counterparty: BCP Emerald Aggregator L.P. (affiliates of Blackstone Inc.)
Consideration: $14.0 billion transaction
Closing: 2023-05-31

Exact text from the filing

(which constitutes the former Climate Technologies segment, excluding Therm-O-Disc, which was divested earlier in fiscal 2022) to private equity funds managed by Blackstone in a $14.0 billion transaction. Emerson received upfront, pre-tax cash proceeds of approximately $9.7 billion and a note receivable with a face value of $2.25 billion (which will accrue 5

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Source: SEC EDGAR

accession 0000950103-23-008357

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