Emerson Electric to sell businesses for $5.2 billion
By Shashwat Awasthi
(Reuters) - Emerson Electric Co (EMR.N: Quote), a maker of factory automation equipment, said it would sell two units for a total of $5.2 billion as the company focuses on its high-growth businesses.
Emerson said on Tuesday it would sell its network power unit to investment firm Platinum Equity in a deal worth $4 billion, while Japan's Nidec Corp (6594.T: Quote) would buy its motors and electric power division for $1.2 billion.
Emerson Electric's shares were down 3.5 percent at $53.82 in premarket trading on Tuesday.
St. Louis-based Emerson said last year it planned to spin off the network power unit, and would explore "strategic alternatives" for the motors and drives, power generation and remaining storage units.
Emerson will retain a subordinated interest in the network power unit, which will continue to be led by Scott Barbour, executive vice president of Emerson and business leader for the network power division, the company said.
The motors and electric power division is part of the industrial automation unit, the company's second-biggest business.
Emerson has said it will focus on its remaining industrial automation units, along with its process management and heating and air conditioning businesses, which together account for more than half the company's total revenue.
Emerson also cut its full-year adjusted earnings per share forecast to $2.90-$3.00 per share from $3.05-$3.25, citing slowing demand in its end markets amid "low growth global environment". Continued...