We are advising Emerson on the transaction

Davis Polk is advising Emerson on the sale of a majority stake in its Climate Technologies business to funds managed by Blackstone in a transaction valuing Climate Technologies at $14 billion. Emerson will receive upfront, pre-tax cash proceeds of approximately $9.5 billion while retaining a non-controlling ownership interest in a new standalone joint venture. The transaction has been unanimously approved by Emerson’s board of directors and is expected to close in the first half of 2023, subject to regulatory approvals and customary closing conditions.

Emerson, headquartered in St. Louis, Missouri, is a global technology and software company providing innovative solutions for customers in industrial, commercial and residential markets. The standalone Climate Technologies business includes the market-leading Copeland compressor business and the entire portfolio of products and services across all residential and commercial HVAC and refrigeration end markets, representing approximately $5 billion of fiscal 2022 sales.

Blackstone is the world’s largest alternative asset manager. Blackstone’s $941 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, infrastructure, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis.

The Davis Polk corporate team includes partners Phillip R. Mills, Marc O. Williams, Brian Wolfe and Cheryl Chan and associate Daisy Wu. Partners Michael Mollerus and Corey M. Goodman and counsel Aliza Slansky are providing tax advice. Partner Travis Triano is providing executive compensation advice. The intellectual property and technology transactions team includes partner Frank J. Azzopardi and associate Mikaela Dealissia. Partner Ronan P. Harty and counsel Matthew Yeowart are providing antitrust and competition advice. Members of the Davis Polk team are based in the New York and London offices.