Emerson (NYSE: EMR), St. Louis, MO, has agreed to sell its Network Power, Leroy-Somer and Control Techniques businesses for a combined value of $5.2 billion.
Japan-based motor manufacturer Nidec Corp. (NYSE:NJ) has agreed to acquire France-based Leroy-Somer and UK-based Control Techniques, valued at $1.2 billion. The two businesses, with combined 2015 sales of $1.7 billion and 9,500 employees, manufactures and supplies alternators, drives and motors.
The acquisition enables Nidec to further enhance its industrial and commercial business and significantly grow its scale in this market.
Platinum Equity and a group of co-investors has agreed to acquire Columbus, OH-based Network Power for $4 billion.
Network Power, with 2015 sales of $4.4 billion, is a manufacturer of thermal management, A/C and D/C power, transfer switches, services and information management systems for the data center and telecommunications industries. The company will continue to be led by Scott Barbour.
Emerson also reported sales for the third quarter ended June 30 of $5.1 billion, down 7 percent from the same period a year ago. Profit fell 15 percent to $490 million.
For the quarter, process management sales decreased 13 percent, industrial automation sales decreased 11 percent, network power sales decreased 8 percent, climate technologies sales decreased 2 percent and commercial and residential solutions sales decreased 16 percent.
Sales for the first nine months of the fiscal year were $14.8 billion, down 10 percent year-over-year. Profit decreased 41 percent to $1.2 billion.
