December 4, 2013 – Emerson announced today it has signed an agreement to acquire SPX Corp.’s 44.5% minority interest in EGS Electrical Group, giving it 100% ownership of the business. Emerson and SPX have jointly held the business since 1997, with Emerson responsible for operational management and consolidation of results in its Industrial Automation segment.
“We are excited for EGS to become a wholly-owned business of Emerson,” said chair and CEO David N. Farr. “Emerging opportunities with our Process Management and Industrial Automation businesses make this the right time to assume full ownership and realize the synergies possible as a fully integrated business of Emerson. We are grateful for the strong partnership with SPX over the years.”
As a global manufacturer of electrical products for commercial, industrial, hazardous and adverse environments, EGS technologies boast durability, safety and quality. The business had annual revenues in 2013 of more than $500 million, while its oil, gas and chemical participation has grown to more than half of total sales.
“Historically, EGS has been a high-quality, niche market participant, with sales concentrated in North America,” Farr said. “As oil, gas and chemical market opportunities have developed, the potential for growth by leveraging Emerson’s strong Process Management and international channels has become increasingly attractive, and can be best achieved under full Emerson ownership.”
The transaction is expected to close within two months, subject to required regulatory approvals; the purchase price will be $571 million.