Emerson Network Power Becomes Vertriv

Emerson Network Power officially completed a spin-out from its parent firm and adopted the name Vertiv. The business was acquired from Emerson by Platinum Equity in a deal valued in excess of $4 billion. Emerson retained a minority interest in Vertiv.

Vertiv is a global provider of mission-critical infrastructure technologies for vital applications in data centers, communication networks, and commercial and industrial environments. The company, which is headquartered in Columbus, Ohio (USA), has more than 20,000 employees and more than 25 manufacturing and assembly facilities worldwide.

Vertiv also announced the appointment of Rob Johnson as its new CEO.  Johnson, most recently an operating partner at Kleiner Perkins Caufield & Byers, spent 10 years at American Power Conversion (APC), a leader in data center infrastructure.  He was President and CEO of APC when the company was sold to Schneider Electric for $6.1 billion in 2007.  While at APC he also served as General Manager of the company’s Availability Enhancement Group.

“It’s a fresh start for a business that already has so much going for it. I look forward to working with my new colleagues at Vertiv as we begin this transformational chapter in the company’s history,” said Mr. Johnson. “As an independent company, Vertiv will operate with great freedom to make business strategy and investment decisions, move more quickly like a startup, and focus on innovative solutions for our customers, including those in the growing cloud computing, mobile and IoT networks.”

http://www.VertivCo.com

• In November 2013, Platinum Equity acquired a controlling stake in Emerson’s embedded computing and power business, which was later rebranded Artesyn Embedded Technologies. 

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Emerson Looks to Spin Out Network Power Division by Q3

Emerson confirmed previously announced plans to spin off its Network Power business into an independent business to be called Vertiv.

Emerson intends to spin off 100 percent of the outstanding common stock of Vertiv through a tax-free distribution to shareholders in a process expected to be substantially complete by September 30, 2016.

Vertiv designs, manufacturer and services mission-critical infrastructure technologies for vital applications in data centers, communication networks and commercial/industrial environments. The company offers a broad range of products in both power and thermal management and provides lifecycle management services and solutions for deploying, maintaining and optimizing these products. In addition, Vertiv provides infrastructure management, monitoring, controls and software solutions for its customers’ critical applications.

Scott Barbour, who has been Executive Vice President of Emerson and Business Leader for Emerson Network Power said, “Our years as part of Emerson have given us a tremendous foundation from which to launch and grow Vertiv as an independent company. Our team is looking forward to the opportunity to concentrate on our core competencies, expand our global customer base, strengthen our industry leading positions, and create value for our future shareholders.”

http://www.emerson.com
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Emerson to Spin Off Network Power Business

Emerson recently announced plans to spin off its Network Power business and to streamline its portfolio.
The company is also exploring "other strategic options" to drive growth and accelerate value creation for shareholders.

The spinoff of Network Power will result in two separate companies with distinct strategies and investment profiles. Following completion of all actions, Emerson will continue to be a global leader in bringing technology and engineering together to provide solutions for customers in the process, industrial, commercial and residential markets.  These actions offer significant opportunities for enhanced growth, profitability, cash flow, and returns to shareholders.

As a publicly traded company, Network Power will be the world’s leading, stand-alone provider of thermal management, A/C and D/C power, transfer switches, services and infrastructure management systems for the data center and telecommunications industries.

“Emerson has a proven record of taking decisive actions to enhance shareholder value while providing an unmatched level of service to customers around the world,” said Chairman and Chief Executive Officer David Farr. “We are aligning ourselves with the changing global marketplace and our customers’ evolving needs to drive Emerson and Network Power forward. Creating two, independent companies will position both businesses to continue as leaders and to pursue distinct strategies to drive profitable growth. Emerson and Network Power will each have sharper strategic focus, enabling both companies to better allocate resources, incentivize employees and allocate capital to capture the significant long-term opportunities in their respective markets.”

http://www.emerson.com/

• http://www.emerson.com Emerson reported $24.5 billion in revenue for fiscal 2014. The company is based in St. Louis and currently has about 115,000 employees worldwide.

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Emerson to Sell Connectivity Business to Bel Fuse

Emerson agreed to sell its Connectivity Solutions business unit to Bel Fuse for $98 million.

Currently a part of Emerson’s Network Power business, with 2013 revenue of more than $80 million, the Connectivity Solutions  business offers fiber optic, radio-frequency and microwave-coaxial technologies that safeguard network reliability. Its brands include Stratos optical technologies, Johnson, Trompeter, Midwest Microwave, Semflex, Vitelec Electronics, AIM Electronics and Cambridge Products. The business unit is based in Bannockburn, Illinois.

“Although the business no longer aligns with our long term strategy to strengthen our core global franchises, it offers Bel attractive growth opportunities and is consistent with its strategic direction,” said Jamie Froedge, Emerson’s Vice President, Acquisitions and Development. “We will work closely to ensure a smooth transition for customers and employees.”

Dan Bernstein, Bel’s president, said, “This is Bel’s third major acquisition in the past 14 months; all together, these acquisitions will increase our revenue from $283 million, pre-acquisition, to approximately $705 million annually.  We are proud that Emerson Inc, ABB Ltd. and TE Connectivity Ltd., have determined in the best interest of their shareholders, customers and employees to entrust these businesses to Bel and we look forward to growing these organizations.”

http://belfuse.com/
http://www.Emerson.com

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Emerson to Sell Stake in Embedded Computing for $300M

Emerson agreed to sell a 51 percent stake in its embedded computing and power business to Platinum Equity for $300 million in cash.  Emerson will retain a 49 percent noncontrolling interest in the business, which will operate as an independent company.  Share repurchase will be increased by $600 million to offset associated earnings dilution.

Emerson’s embedded computing and power business, which is based in Carlsbad, California, had 2012 revenue of approximately $1.4 billion. It supplies embedded computing solutions based on open standards such as ATCA, AdvancedMC, CompactPCI, COM Express, OpenVPX and VMEbus.

“After extensive consideration, we have found an arrangement to exit this business in a manner that maximizes its value for our shareholders,” said Emerson Chairman and Chief Executive Officer David N. Farr. “The embedded computing and power business is a technology leader in the industry it serves, but no longer fits strategically in our portfolio.  The transaction with Platinum will allow us to immediately focus on our core businesses while also participating in the upside from repositioning the business as it focuses on growth as an independent company.”
 
"We have forged a strong partnership with Emerson, coming together in a way that will create success for everyone,” said Platinum Equity Chairman and Chief Executive Officer Tom Gores.  “We will build on the foundation established under Emerson to further position the business as a strong and innovative competitor in the marketplace.”

http://www.Emerson.com

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