Blackstone and Emerson announced that private equity funds managed by Blackstone have completed the previously announced acquisition of a majority stake in Emerson’s Climate Technologies business in a transaction valuing the business at $14.0 billion.
The new standalone business will be named Copeland. As a standalone company serving the global HVACR market, Copeland’s product portfolio includes market-leading compressors, controls, thermostats, valves, software and monitoring solutions for residential, commercial and industrial customers.
“With the focus that comes from being a standalone company, and the support of our shareholders, Blackstone and Emerson, we plan to extend the company’s leadership position in the industry and develop new and integrated climate technology solutions,” said Ross B. Shuster, chief executive officer, Copeland.
Copeland is poised to build on its brand and expertise to shape the future of climate technology. The company’s products, expertise and innovation play a key role in improving the energy efficiency of heating and cooling solutions – including the rapidly growing market for electric heat pumps and climate-friendly refrigerants, which are seeing strong demand and global adoption given their potential to reduce the environmental impact and carbon emissions of HVAC systems.
“Leveraging Blackstone’s track record of successful large-scale corporate partnerships, we look forward to working with the Copeland and Emerson teams to accelerate the company’s profitable, long-term growth,” said Joe Baratta, global head of Blackstone Private Equity.
“The upfront proceeds from this transaction allow us to advance our portfolio in attractive, higher-growth automation markets, while our remaining non-controlling investment enables us to benefit from Copeland’s future upside under Blackstone’s ownership until we exit the business,” said Lal Karsanbhai, president and chief executive officer, Emerson.
Copeland will continue to operate from St. Louis, while maintaining a global footprint to serve customers in Europe, Latin America, Asia, the Middle East and Africa.
Jim Golden/Joseph Sala/Tanner Kaufman/Joele Frank/Wilkinson Brimmer Katcher
Tel: +1 (212) 355-4449