Emerson closes purchase of EGS Electrical
ST. LOUIS – Emerson on Thursday announced that it has closed the transaction acquiring SPX Corporation’s 44.5 percent minority interest in EGS Electrical Group, giving it 100 percent ownership of the business. Emerson and SPX have jointly held the business since 1997, with Emerson responsible for operational management and control. Results for the business, which had annual revenues in 2013 of more than $500 million, have been consolidated in Emerson’s Industrial Automation segment.
As announced in December, the transaction allows Emerson to focus on emerging growth opportunities in the oil, gas and chemical industries through its strong Process Management and international channels. Market repositioning actions to pursue these opportunities are already underway, including renaming the business unit to Appleton Group, reflecting its most recognized brand. The transaction is expected to be slightly accretive to earnings per share in 2014.
Emerson is a global leader in bringing technology and engineering together to provide innovative solutions for customers in industrial, commercial, and consumer markets around the world. The company is comprised of five business segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. Sales in fiscal 2013 were $24.7 billion. Emerson Process Management is based in Marshalltown.