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Emerson sells controlling stake in Climate Technologies business

  • marimac 

The group has reached a deal with investment group Blackstone to divest control of the Copeland compressor businesses and a portfolio of other HVACR products.

Image credit: Blackstone
Image credit: Blackstone

Emerson has sold a majority stake in its Climate Technologies businesses to investment group Blackstone in a deal valued at USD14-billion.

The sale will see Blackstone acquiring the Copeland compressor brand and a range of solutions that it provides to the refrigeration and HVAC sectors.

Emerson will retain a non-controlling ownership interest in the new joint venture formed under the deal, while using funds from the transaction to invest in the development of tools and software to help automate controls industrial processes.

Joe Baratta, global head of Blackstone Private Equity, said the deal with Emerson would create a partnership focused on meeting growing demand for innovative HVACR solutions. He said: “Copeland is the market leader in supplying critical components for residential, commercial and refrigeration climate control systems. The business is poised for accelerated growth as it leads the way in helping consumers and businesses shift to more energy-efficient heating and cooling products as part of their carbon reduction efforts.”

Blackstone and Emerson added that the deal would also ensure a smooth transition to the new ownership structure for existing employees.

Emerson said it had opted to sell the majority stake in the operations of Copeland and its wider Climate Technologies operations to help fund its own investment in the development of ‘intelligent’ devices and software.  This would build on the group’s 2021 acquisition of a controlling stake in industrial software specialists AspenTech. The company develops solutions and products that incorporate AI to automate complex processes with the use of operational data.

Emerson president Lal Karsanbhai said the company could now focus on providing automation solutions to a diverse number of markets.

Karsanbhai added that the deal would still allow Emerson to also retain a stake in the Climate Technologies business that continued to have strong potential for growth.