Premier Global Law Firm Baker McKenzie has advised global manufacturing and technology company Emerson Electric on the non-US aspects of its USD 3.2 billion acquisition of global manufacturing company Pentair's Valves & Controls business.
This acquisition follows Emerson’s recently announced divestitures or "carve-outs" of Network Power, Leroy-Somer and Control Techniques for a total of USD 5.2 billion as part of the Company’s overall strategic portfolio repositioning. Baker McKenzie advised Emerson on these complex "carve-out" transactions the most recent of which, the USD 4 billion carve-out and sale of Emerson's Network Power business to Platinum Equity, closed on 30 November 2016. This was a highly lengthy and complex transaction which involved the co-ordination of over 60 global jurisdictions and multiple work-streams, including corporate, tax, real estate, IT, employment, pensions and cash repatriation.
Commenting on the deal, Baker McKenzie partner Jannan Crozier said: "Following a series of strategic carve-outs, this deal marks another step forward for our client Emerson in the strategic repositioning of its business portfolio.
There are clear synergies between Emerson's business and that of Pentair's Valves & Controls and we are delighted that we could advise Emerson on its next phase of growth and expansion.
London-based partner Jannan Crozier led the transaction, together with senior associates Robert Gray and Kim Sartin.
Carve-out transactions have increased in popularity in recent years as businesses seek to unlock value from their non-core enterprises. Previous complex carve-out transactions which Baker McKenzie has advised Emerson on include the sale of its Power Transmission Solutions Business to Regal Beloit Corporation in 2015, its InterMetro business in 2015 and Embedded Computing and Power business in 2013.