Emerson Reaches Agreement to Sell Network Power for $4 Billion to Platinum Equity

Emerson announced an agreement to sell Network Power to Platinum Equity and a group of co-investors. The transaction is valued at $4 billion, and Emerson will retain a subordinated interest in Network Power. The sale of Network Power is expected to close by December 31, 2016, subject to customary regulatory approvals.

With revenue of approximately $4.4 billion in fiscal 2015, Network Power, based in Columbus, Ohio is a leading provider of thermal management, A/C and D/C power, transfer switches, services and information management systems for the data center and telecommunications industries.

The proposed sale marks Emerson's second divestiture to Platinum Equity in the last three years. In November 2013, Emerson sold a 51 percent controlling stake in its embedded computing and power business, which Platinum Equity rebranded Artesyn Embedded Technologies.

Keywords: Thermal Management, A/C and D/C Power, Transfer Switches, Information Management Systems, Data Center, Telecommunications, ARC Advisory Group.