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
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.
