Emerson announced today that it has entered into a definitive agreement to sell its remaining interests in the Copeland joint venture for a transaction value of approximately $3.5 billion, with pre-tax cash proceeds of $3.4 billion, net of the release of $0.1 billion of future indemnity obligations. Private equity funds managed by Blackstone will purchase Emerson’s 40% common equity ownership in the joint venture, while Copeland will repurchase the seller’s note.

“We appreciate Emerson’s partnership and are pleased to reach this agreement to acquire full ownership of Copeland,” commented Joe Baratta, Global Head of Blackstone Private Equity. “Copeland has a world-class team that is helping lead the transition to more energy efficient heating and cooling solutions – and we are excited to continue supporting its accelerated growth in the years ahead.”

The transactions have been unanimously approved by Emerson’s Board of Directors and are expected to close in the second half of calendar year 2024, subject to regulatory approvals and customary closing conditions. The transactions are expected to result in a net pretax gain of approximately $0.2 billion. Emerson intends to use the approximate $2.9 billion after-tax cash proceeds to pay down its existing debt obligations.

A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and GIC will invest alongside Blackstone as part of the transaction.

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