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)
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
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, 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.
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.
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.
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.
Dec. 15, 2014, 7:42 AM
- Emerson Electric (NYSE:EMR) has reached a deal to sell its power-transmission solutions business to Regal Beloit (NYSE:RBC) for $1.4B in cash.
- Emerson says it will use the proceeds for an incremental share buyback during its fiscal 2015.
- Previously: WSJ: Emerson Electric nears $1.2B sale of unit to Regal Beloit (Dec. 12 2014)
- RBC +5.8% premarket
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.
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.
Oct. 4, 2013, 9:53 AM
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)
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)
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.
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