Premier global law firm Baker & McKenzie has advised global manufacturing and technology company Emerson Electric on the USD1.2 billion carve-out and sale of its Leroy-Somer and Control Techniques businesses to Nidec Corporation and on the USD4 billion carve-out and sale of its Network Power business to Platinum Equity. The sales are expected to close by December 31, 2016, subject to regulatory approvals.
London-based partner Peters Strivens and senior associate Phelim O'Doherty led on the Leroy-Somer and Control Techniques business transaction, whilst London partner Jannan Crozier and senior associate Richard Needham led on the Network Power business transaction.
Both were highly complex transactions involving the co-ordination of many jurisdictions and multiple work-streams, including corporate, real estate, IT, employment, pensions and cash repatriation.
Commenting on the deals, Peter Strivens said: "This was a great opportunity for us to work with our longstanding client Emerson on these highly strategic transactions for its business. Both transactions involved a highly complex planning process to extract the integrated business ready for successful sales. Our cross-border team of experts in over 40 countries was able to provide both the strategic M&A advice with integrated carve-out and project management capability. It is a demonstration of our international presence and expertise and confirms our position as market leading advisors on complex carve-out transactions."
Vanessa McKenzie, VP – M&A Group Leader of Emerson, commented: "Baker & McKenzie’s carve-out team played a critical role in our proposed divestitures of Network Power and Leroy-Somer and Control Techniques businesses. Their expertise in planning and executing complicated carve-out structures gave us the flexibility to pursue a spinoff and sale of Network Power in parallel. During this same period, Baker & McKenzie also helped create the carve-out plan to sell Leroy-Somer and Control Techniques which speaks to their bench strength. Over the years, we’ve built tremendous trust and confidence in the Baker & McKenzie carve-out team."
For more than 30 years, Leroy-Somer and Control Techniques have been leading manufacturers and suppliers of alternators, drives, and motors, with approximately 9,500 employees around the world.
Network Power, based in Columbus, Ohio 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.