Emerson to Spin Off Network Power Business

ST. LOUIS — Emerson Electric plans to spin off its network power business as a separate publicly-traded company, and will consider options for several other businesses.

The St. Louis company intends to focus on its process management and industrial automation businesses, which make products like measurement devices, valves and wireless transmitters, as well as on its commercial and residential business, which make plumbing tools, wet and dry vacuums, and food waste disposals. It said those businesses had about $16.3 billion in revenue in its last fiscal year.

Emerson Electric is planning a tax-free spinoff of the network power business, which provides thermal management, power, transfer switches, services and infrastructure management for the data center and telecom industries. It said that business has about $4.9 billion in annual revenue.

The company also plans to review its overall corporate services and structure. It intends to complete those moves by Sept. 30, 2016.

Emerson Electric also said it will review strategic options for its motors and drives, power generation, and storage businesses.

Emerson Electric Co. had a total of $24.5 billion in revenue in its latest fiscal year.

Its shares fell 20 cents to $55.36 in midday trading. The stock has fallen more than 16 percent over the last year.

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