Leading global law firm, Baker McKenzie, has acted as international counsel to Emerson Electric Co. on the sale of its majority stake in its Climate Technologies business to private equity funds managed by Blackstone in a transaction valuing the business at $14 billion.

The standalone Climate Technologies business includes the market-leading Copeland compressor business and the entire portfolio of products and services across all HVAC and refrigeration end-markets, representing approximately $5 billion of fiscal 2022 sales.

The transaction marks a significant milestone in Emerson’s journey to create a higher value, cohesive industrial technology portfolio and to become a pure-play global automation company serving a diversified set of end markets. Emerson, together with AspenTech, has the industry’s most comprehensive portfolio of advanced automation technologies and software.

Following completion of the transaction, Emerson is expected to have industry leading margins, strong free cash flow generation and will continue to leverage Emerson’s management process and operating discipline.

The Baker McKenzie team was led by London Partner and Global M&A Chair, Jannan Crozier and also included Senior Corporate Associate, Anthony Pisarski, Corporate Associate, Tiarna Meka and Employment Partner, Monica Kurnatowska and also Senior Employment Associate, Lorren Martin.

Commenting on the transaction, Jannan said: "We are delighted to have acted as international counsel to Emerson on this high-profile and transformational deal. This transaction continues to demonstrate the value that can be unlocked by carve-out transactions and builds on prior deals we have supported Emerson on including the merger of its software business with AspenTech and the carve-out the InSinkErator business to Whirlpool. This will allow Emerson to become a pure-play automation company and position itself for higher growth."
 
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