Emerson Doubles Down on Automation: $3.5B Copeland Sale Fuels Strategy Shift
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 07 2024
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Source: Benzinga
- Emerson Electric Co. to Sell Stake in Copeland Joint Venture: Emerson Electric Co. has agreed to sell its remaining stake in the Copeland joint venture for about $3.5 billion.
- Deal Details: The deal includes pre-tax cash proceeds of $3.4 billion, with private equity funds managed by Blackstone Inc. acquiring Emerson's 40% common equity stake.
- Approval and Expected Closure: Emerson's Board of Directors has approved the sale, expected to close in the second half of 2024 pending regulatory approvals.
- Financial Impact: The deal is anticipated to yield a net pretax gain of $0.2 billion, with Emerson planning to use $2.9 billion after-tax proceeds to reduce debt.
- CEO Statement and Market Performance: Emerson's CEO views this as a step to simplify the portfolio, enhance focus on automation, and reported strong sales growth in the second quarter. EMR shares were up 0.97% premarket.
Analyst Views on MAKX
Wall Street analysts forecast MAKX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MAKX is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
