The Firm is representing a consortium led by Blackstone Inc. (NYSE: BX) in a transaction in which private equity funds managed by Blackstone have entered into a definitive agreement with Emerson Electric Co. (NYSE: EMR) to acquire a majority stake in Emerson’s Climate Technologies business, in a transaction valuing Climate Technologies at $14.0 billion. Under the agreement, the Blackstone-led consortium will acquire a 55% common equity interest in the standalone Climate Technologies business and Emerson will retain a 45% common equity stake. A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and GIC will invest alongside Blackstone as part of the transaction.
Emerson’s Climate Technologies Business includes the market-leading Copeland compressor business and a portfolio of products and services across HVAC and refrigeration end-markets.
The transaction is expected to close in the first half of the calendar year 2023, subject to regulatory approvals and customary closing conditions.
The Simpson Thacher team includes Elizabeth Cooper, William Allen, Louis Argentieri, Julia Tory, Ben Kloss, Nate Little and Ginevra Sforza (M&A); Sophie Staples, Ed Grais and Matt Lester (Tax); Brian Gluck, Adam Moss, Dorothy Hector and Roman Ibragimov (Banking and Credit); Jon Ozner (Capital Markets); Lori Lesser, Alysha Sekhon and Mark Natividad (IP); Greg Grogan, Caitlin Lucey and Jesslyn Nunez (ECEB); Steve DeLott (Insurance); Krista McManus, Tim Gallagher and Dennis Loiacono (Real Estate); Toby Chun and Deepa Sarkar (Environmental); Jonathan Lindabury and Nathan Utterback (Derivatives); and Jonathan Karen, Steven Klar and Ben Smith (Funds).