Emerson Electric Co.NYSE
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  • Fri, Aug. 19, 11:29 AM
    • "The purchase of Pentair’s (PNR -1.6%) Valves & Controls business adds definitive risk to Emerson’s (EMR -3.8%) earnings over the next several years," says Buckingham Research's Joshua Pokrzywinski, downgrading Emerson to Underperform from Neutral, and cutting the price target to $44 from $49.
    • “We believe the strategic overlap is less than ideal."
    • Also downgrading is Credit Suisse, to Neutral from Outperform. The price target remains at $57.
    • “Investors will be rightly cautious of this pitched ‘strategic deal’ at the wrong time of the cycle,” says Stifel's Robert McCarthy as he maintains his Buy rating. "The perception [will be] that Emerson has caught a falling knife in the same general end market where it struggled for the past two plus years.”
    • Previously: Emerson to buy Pentair's valves and controls business for $3.15B (Aug. 18)
    | Fri, Aug. 19, 11:29 AM | 9 Comments
  • Thu, Aug. 18, 5:12 PM
    • Emerson Electric (NYSE:EMR) has agreed to buy the Valves & Controls business of Pentair (NYSE:PNR) for $3.15B.
    • Pentair shares are up 1.1% after hours.
    • It's a move in line with Emerson's two core verticals, particularly combined with Emerson's planned multibillion-dollar divestitures of Network Power, Leroy-Somer and Control Techniques.
    • “This acquisition delivers on our strategic plan of investing in Automation Solutions and in markets where we have a global leadership position and see significant long-term growth opportunities,” says CEO David Farr in a statement.
    • The deal's expected to close in four to six months.
    • Conference call link
    | Thu, Aug. 18, 5:12 PM | 4 Comments
  • Tue, Aug. 2, 7:20 AM
    • Emerson Electric (NYSE:EMR) is selling its network power division to Platinum Equity and other investors in a deal valued at $4B, the company's second announced divestiture on Tuesday ahead of its FQ3 earnings release.
    • "By selling Network Power... we have achieved a successful result for our shareholders as part of our plan to streamline Emerson to create a more focused company," CEO David Farr said in the statement.
    • Earlier in the day, Emerson agreed to sell its motor and generator business to Nidec for $1.2B.
    | Tue, Aug. 2, 7:20 AM | 8 Comments
  • Tue, Aug. 2, 4:20 AM
    • Confirming earlier reports, Japan's Nidec has agreed to buy Emerson Electric's (NYSE:EMR) motors and electric power generation business for $1.2B, in an all-cash deal expected to be completed by the end of the year.
    • The transaction continues Nidec's expansion of its motor business through multiple foreign takeovers, including the acquisition of Emerson's motors and controls division in 2010.
    | Tue, Aug. 2, 4:20 AM | 1 Comment
  • Fri, Jul. 22, 2:31 PM
    • Emerson Electric (EMR +0.2%) has made an offer to acquire pump manufacturer Pentair's (PNR +0.8%) valves and controls business, in a sale could be valued at ~$2B (£1.5B), Reuters reports.
    • Such a deal would free PNR from a unit that CEO Randy Hogan considers a laggard in generating cash, while allowing EMR to expand within its core sectors as it seeks to shed its network power and motors and drives businesses, according to the report.
    | Fri, Jul. 22, 2:31 PM | 5 Comments
  • Jun. 29, 2015, 10:57 AM
    • Emerson Electric (EMR -0.8%) is poised to buy Spectronix, an Israeli company which develops fire detection systems, for $99M, Globes reports.
    • The purchase price consists of $79M in cash and $20M that will be distributed to investors as a dividend.
    • Spectronix's 2014 revenue totaled $40.1M; net profit totaled $5.3M.
    | Jun. 29, 2015, 10:57 AM | 2 Comments
  • Apr. 23, 2015, 5:49 PM
    • At least a half-dozen major industrial companies - including GE, Caterpillar (NYSE:CAT) Siemens (OTCPK:SIEGY), Honeywell (NYSE:HON), Dover (NYSE:DOV), Danaher (NYSE:DHR) and Emerson Electric (NYSE:EMR) - are said to be weighing offers for oilfield services assets worth $5B-$10B that Halliburton (NYSE:HAL) is preparing to sell ahead of its pending merger with Baker Hughes (NYSE:BHI), Bloomberg reports.
    • HAL reportedly will send offering materials to those companies, as well as P-E firms and rival oilfield services providers, in the coming weeks; first up likely will be the drill bits unit and another that uses data to track and steer the direction of drills.
    • These companies could own an edge over oilfield services companies that analysts have pegged as logical bidders for HAL’s castoffs - such as National Oilwell Varco (NYSE:NOV) and Superior Energy Services (NYSE:SPN) - because HAL might not want to give any more market share to companies that already offer the same services, preferring to sell to new players entering the market.
    | Apr. 23, 2015, 5:49 PM | 1 Comment
  • Dec. 15, 2014, 7:42 AM
    | Dec. 15, 2014, 7:42 AM
  • Oct. 16, 2014, 3:17 PM
    • Timken (TKR -0.2%), Regal Beloit (RBC +0.9%) and Altra Industrial Motion (AIMC +0.6%) have made it to the second round of bidding in the auction for Emerson Electric's (EMR +2%) power transmission solutions business, Reuters reports.
    • P-E firms Warburg Pincus and Onex also are said to be in the running for the unit, which is expected to fetch $1.2B-$1.6B in a sale.
    | Oct. 16, 2014, 3:17 PM
  • Sep. 2, 2014, 3:31 PM
    • General Electric (GE -0.4%) reportedly is among those preparing binding offers for Italian valve maker Petrolvalves, with Emerson Electric (EMR +0.4%) also considered a "motivated" bidder which could also participate in the final round of the company's auction.
    • The offers could value the Italian company at more than €1B ($1.31B), according to Reuters.
    • Petrolvalves is said to have set a deadline for binding offers towards the end of September in an attempt to sign a deal later this year.
    | Sep. 2, 2014, 3:31 PM
  • Oct. 4, 2013, 9:53 AM
    • Emerson (EMR) acquires oil and gas safety equipment maker Enardo. (PR)
    • Enardo will presumably operate within EMR Process Management, which acquired Virgo Valves less than two weeks ago.
    • Enardo had $65M in sales last year.
    | Oct. 4, 2013, 9:53 AM | 1 Comment
  • Sep. 24, 2013, 9:23 AM
    • Emerson (EMR) will buy privately held Virgo Valves and Controls which will now operate within EMR Process Management's final controls unit.
    • Virgo is expected to fit well with EMR's Fisher control valve business.
    • Virgo had sales of ~$250M last year.
    • Financial terms were not disclosed. (PR)
    | Sep. 24, 2013, 9:23 AM
  • Aug. 6, 2013, 7:45 AM
    • Emerson (EMR) to sell 51% stake in embedded computing and power business to private equity firm Platinum Equity for $300M.
    • Takes $503M pretax goodwill impairment charge on the operations.
    • Net income slumps $194M from $770M, hurt by the impairment.
    • Sales fall reflects "a sluggish economic environment and difficult comparisons, as recovery from the Thailand flooding drove robust third quarter sales in the prior year."
    • Underlying sales -1%. Breakdown: U.S. -3%, Asia -3%, Europe -6%, emerging markets +2%.
    • Low levels of business investment continue to reflect a cautious climate, particularly in mature markets," says CEO David Farr. "The near-term is expected to remain slow, but orders growth has resumed, suggesting the economic environment is beginning to stabilize and improve.
    • 2013 outlook: EPS at lower end of $3.48-$3.55 range vs consensus of $3.49; reported and underlying sales growth of 1%, slightly lower than previous expectations; Adjusted EBIT and pretax margin approximately equal to prior year; operating cash flow of $3.4B, free cash flow of $2.7B. (Previous) (PR)
    | Aug. 6, 2013, 7:45 AM | 1 Comment
  • Jul. 30, 2013, 2:10 PM
    • France's Schneider Electric (SBGSF.PK) is nearing a £3.3B (~$5B) deal to acquire British engineer Invensys (IVNSF.PK) and could announce it as soon as tomorrow, Reuters reports.
    • The structure of the share-plus-cash deal should remain roughly the same as the one initially presented earlier this month, as no other bidder has emerged to challenge Schneider's bid.
    • One source says there's still a 10%-15% chance that a rival bidder such as Emerson (EMR) could come in even after a potential announcement tomorrow.
    | Jul. 30, 2013, 2:10 PM
  • Jun. 21, 2012, 4:30 AM

    Invensys (IVNYY.PK) confirms it held preliminary talks to sell itself and that interested third parties included Emerson Electric (EMR), but says talks came to an end with no offer.

    | Jun. 21, 2012, 4:30 AM
  • Jun. 20, 2012, 11:24 AM

    Emerson Electric (EMR -0.7%) has approached U.K. company Invensys (IVNYY.PK) about acquiring its Foxboro unit, a maker of meters and control systems, and even possibly the whole firm, Bloomberg reports. Invensys, whose market cap is $2.6B, is exploring its options, and has spoken to GE and Siemens (SI), which is interested in Invensys' rail ops.

    | Jun. 20, 2012, 11:24 AM