Rockwell Automation, Inc. completed the acquisition of Plex Systems, Inc. from Francisco Partners Management, L.P.
August 30, 2021
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Rockwell Automation, Inc. (NYSE:ROK) signed an agreement to acquire Plex Systems, Inc. from Francisco Partners Management, L.P. for $2.2 billion on June 25, 2021. The acquisition will be financed with a combination of cash and short-term and long-term debt. As of August 3, 2021, Rockwell Automation announced that it is offering three series of its notes, subject to market and other conditions. Rockwell Automation intends to use the net proceeds it receives from this offering to partially fund the purchase price in its anticipated acquisition of Plex Systems. Plex will be reported as part of Rockwells Software and Control operating segment and Rockwell will welcome more than 500 new employees. The transaction is subject to customary closing conditions and completion of regulatory review. The acquisition is expected to close in Rockwells fiscal fourth quarter. As of July 27, 2021 the transaction is expected to close in 4Q21. Goldman Sachs & Co. LLC acted as the financial advisor and Paul Hastings LLP acted as legal advisor to Francisco Partners. Morgan Stanley is advising Rockwell Automation. Barclays Capital Inc. acted as financial advisor for Plex Systems, Inc. Rockwell Automation currently maintain a five-year unsecured revolving credit facility under which it may borrow up to $1.25 billion. The company can increase the aggregate amount of the banks commitment under this credit facility by up to $750 million, subject to the consent of the banks in the credit facility
Rockwell Automation, Inc. (NYSE:ROK) completed the acquisition of Plex Systems, Inc. from Francisco Partners Management, L.P. on August 31, 2021.
Rockwell Automation, Inc. is one of the world's largest companies that specialize in the manufacturing and marketing of automation and industrial infrastructure control systems. The products are primarily intended for the food processing, automotive, mining, oil, and gas industries. Net sales break down by family of products and services as follows:
- automation and control devices (45.2%): drive systems, variable frequency drives, motor controls, servo drives, servomotors, actuators, microcontrollers, safety, detection, protection systems, etc.;
- automation solutions and systems (31.9%): automation software and hardware platforms, design, visualization, simulation and execution software, human-machine interface devices, industrial computers, computer networks, etc.;
- professional services and value-added solutions (22.9%): consulting, training and maintenance services, on-site and remote assistance, cloud-based connected services, digital automation solutions for the oil, gas and petrochemical industries, etc.
Net sales are distributed geographically as follows: North America (57.7%), Europe/Middle East/Africa (20.7%), Asia/Pacific (15%) and Latin America (6.6%).