Blackstone has bought a majority stake in Emerson‘s Climate Technologies, an HVACR company, in a transaction valuing Climate Technologies at $14 billion.
The standalone Climate Technologies includes the Copeland compressor business and the portfolio of products and services across the HVAC and refrigeration end markets. Emerson will receive upfront, pre-tax cash proceeds of approximately $9.5 billion while retaining a non-controlling ownership interest in a new standalone joint venture.
“We are excited to partner with Blackstone given its successful history of value creation in collaboration with corporate partners,” comments Lal Karsanbhai, president and chief executive officer of Emerson. “We look forward to working closely with Blackstone to ensure a smooth transition for Climate Technologies’ employees and customers.”
Centerview Partners LLC and Goldman Sachs are serving as financial advisors to Emerson, and Davis Polk & Wardwell LLP is serving as legal counsel. Barclays served as financial advisor to Blackstone. Guggenheim Securities and Evercore also provided financial advisory services to Blackstone. The ABL revolver and TLA portion of the debt financing related to the transaction is led by RBC Capital Markets, Wells Fargo and SMBC. Simpson Thacher & Bartlett LLP is acting as legal counsel to Blackstone.