ST. LOUIS — In August of 2016, Emerson announced an agreement to sell its Network Power business to Platinum Equity and a group of co-investors.
The company announced that it has completed the sale. Emerson received proceeds of $4 billion and retained a subordinated interest in the business.
“The completion of this transaction is an important step in our strategic portfolio repositioning as we work to streamline the company and create opportunities for long-term growth and drive value for shareholders,” said David N. Farr, Chairman and Chief Executive Officer of Emerson. “With Network Power under the Platinum Equity umbrella, it is well positioned to achieve its long-term goals and succeed in the future.”
Platinum Equity Chairman and CEO Tom Gores said he is proud of his firm’s strong relationship with Emerson and the commitment on both sides to finding a solution that is good for Network Power going forward.
“We appreciate Emerson’s trust and confidence in our ability to execute,” said Gores. “This investment will be a cornerstone in our portfolio and is a great fit for Platinum that plays right to our strengths. We will deploy our full range of global operational skills, financial resources and M&A capabilities to support the company’s growth and innovation.”
Network Power is rebranding as Vertiv and will operate as a stand-alone global enterprise in Platinum Equity’s portfolio. Headquartered in Columbus, Ohio, the company is a leading provider of thermal management, A/C and D/C power, transfer switches, services and information management systems for the data center and telecommunications industries. Emerson recently reported that the Network Power business had sales of approximately $4.4 billion in fiscal 2016.
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