- Baker McKenzie advised on one of the largest deals of the quarter globally: Emerson Electric’s USD 4 billion carve-out and sale of its Network Power business
- Complex cross border disposals to become more relevant as companies re-examine their businesses
Premier global law firm Baker McKenzie has advised global manufacturing and technology company Emerson Electric on the USD 4 billion carve-out and sale of its Network Power business to Platinum Equity, which closed 30 November.
This was a highly lengthy and complex transaction involving the co-ordination of over 60 global jurisdictions and multiple work-streams, including corporate, tax, real estate, IT, employment, pensions and cash repatriation. What is more, this transaction will influence the wider market thinking on carve-outs, and set the benchmark at how large companies will manage their businesses. Going forward, with corporates under pressure to increase value to their stakeholders, complex disposals will become increasingly more attractive.
Commenting on the deal, Baker McKenzie partner Jannan Crozier said: "This was a great opportunity for us to work with our longstanding client Emerson on this highly strategic transaction for its business. The transaction involved a highly complex planning process to extract the integrated business ready for successful sales. Our global cross-border team of experts 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 unique expertise and confirms our position as market leading advisers on complex carve-out transactions."
London-based partners Jannan Crozier and Peter Strivens and senior associate Richard Needham led on the Network Power business transaction, which provides infrastructure technologies and life cycle services for information and communications technology systems, which enable efficient, highly available networks.
Previous complex carve-out transactions we have advised Emerson on include its global power transmissions business in 2015, its embedded computing and power business in 2013 and InterMetro business in 2015.