Funds managed by Blackstone Inc. (NYSE:BX), Platinum Falcon B 2018 Rsc Ltd and GIC Private Limited entered into a definitive agreement to acquire 55% stake in Emerson Climate Technologies, Inc. from Emerson Electric Co. (NYSE:EMR) at an enterprise value of $14 billion on October 30, 2022. Under the terms of the transaction, which values the Climate Technologies Business at $14 billion, Emerson will receive upfront, pre-tax cash proceeds of approximately $9.5 billion and a note of $2.25 billion at closing. Upon closing, Emerson retain 45% common equity ownership of the standalone Climate Technologies business, which will be structured as a joint venture between Emerson and Blackstone. The cash consideration will be funded by $6.2 billion debt financing ($5.5 billion of fully committed debt financing, $6.2 billion inclusive of an unfunded ABL facility) and $4.4 billion of equity contribution from Blackstone. The ABL revolver, TLB and Senior Secured Notes were led by Wells Fargo, RBC Capital Markets, LLC and Barclays, respectively. Climate Technologies Business had fiscal 2022 net sales of $5 billion, pre-tax earnings of $1 billion and EBITDA of $1.1 billion. The transaction is subject to regulatory approvals and customary closing conditions. The transaction has been unanimously approved by Emerson's Board of Directors. As of February 1, 2023, the European Commission (EC) has cleared the transaction. Upon completion of the transaction, Ross B. Shuster will become Chief Executive Officer of the new Standalone Climate Technologies Business. As on April 22, 2023, The Competition Commission of India has approved the transaction. The transaction is expected to close in the first half of the calendar year 2023. Emerson expects to invest the proceeds from the transaction in strategic M&A to strengthen and diversify its automation portfolio in four targeted adjacent markets.

Barclays, Evercore and Guggenheim Securities, LLC acted as financial advisors and Elizabeth A. Cooper, William J. Allen, Sophie Staples, Brian Gluck, Adam Moss, Jon Ozner, Lori Lesser, Greg Grogan, Jonathan Lindabury, and Ben Smith of Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone. Centerview Partners LLC and Goldman Sachs & Co. LLC acted as financial advisor and Phillip R. Mills, Marc O. Williams, Brian Wolfe, Cheryl Chan, Michael Mollerus, Corey M. Goodman, Travis Triano, Frank J. Azzopardi and Ronan P. Harty of Davis Polk & Wardwell LLP acted as legal advisor to Emerson. Joseph Dennis, David D'Souza and Emma Rohsler of Herbert Smith Freehills New York LLP acted as legal advisor to Blackstone Inc. Mark Thierfelder of Dechert LLP acted as legal advisor to GIC Private Limited and Blackstone Inc. Jannan Crozier and Monica R. Kurnatowska of Baker & Mckenzie LLP, London acted as legal advisors to Emerson.