Drives & Controls Magazine November/December 2022

n NEWS November/December 2022 12 EMERSON IS SELLING a majority stake in its Climate Technologies business to the private equity firm Blackstone in a transaction that values the business at $14bn. Emerson plans to become a“pure play”automation company serving a variety of markets. It claims that, together with AspenTech – the industrial software developer in which it took a 55% stake for $6bn earlier this year – it has the industry’s most comprehensive portfolio of advanced automation technologies and software. The Climate Technologies business includes Copeland compressors and a portfolio of HVAC and refrigeration products and services. Its 2022 sales are worth around $5bn. Under the deal with Blackstone, Emerson will keep a non-controlling 45% stake in Climate Technologies, which they will operate as a standalone joint venture until its sale or IPO. As a pure automation supplier, Emerson says it will be positioned for higher growth in the process, hybrid and discrete industries. Following completion of the transaction, Emerson expects to have industry-leading margins and strong free cash-flow generation. “Today’s announcement is a definitive step in the portfolio journey we embarked on when I became CEO in early 2021,”says Emerson’s president and CEO, Lal Karsanbhai. “Over the past 18 months, the Emerson team has accelerated our portfolio transformation, divesting non-core businesses including InSinkErator and Therm-O-Disc, while investing in organic growth opportunities and important transactions including AspenTech. Emerson recently unveiled a new software- defined automation architecture that it predicts will“catalyse the future of modern manufacturing”. It says that the next- generation architecture, based on its Plantweb digital ecosystem, will empower companies through“boundless automation”to manage, connect and deliver OT (operational technology) and IT (information technology) data seamlessly and easily across the enterprise. The ability to move data freely and securely across OT and IT domains – from the intelligent field to the edge and cloud – will optimise operational and business performance across enterprises, Emerson predicts. “The industrial sector is facing a pivotal moment, with the intersecting priorities of safety, productivity and sustainability forcing a crossroads between ‘the way things have always been done’and the tech-powered vision of tomorrow,”says Mark Bulanda, executive president of Emerson’s Automation Solutions business.“As an automation leader with expanding software capabilities through our AspenTech addition, Emerson is well- positioned to help the industries we serve navigate a path to a digital future.” Emerson quits Climate Technology in $14bn deal to focus on automation THE TAIWANESE ELECTRONIC component and service provider Yageo Corporation is buying Schneider Electric’s Telemecanique Sensors business in a cash deal that values the business at €723m. Schneider will grant Yageo a license to use the Telemecanique Sensors name, and Yageo will acquire the relevant patents. Telemecanique Sensors produces electromechanical and electronic sensors including limit switches, proximity sensors, safety switches, RFID systems, wireless devices, photoelectric sensors and connectors. In 2021, it generated around €280m in revenues, with about 70% of this coming from North America and Europe. The proposed deal will strengthen Yageo’s position as a global supplier of electronic components and will broaden its portfolio. After the deal, Yageo will have annual revenues of more than $600m, around 14% of this coming from sensing products. “The proposed acquisition will be a major milestone for Yageo to further strengthen its position in the sensor market, which will be a significant growth driver,” says the company’s founder and chairman, Pierre Chen. “We will be able to deliver an even more comprehensive product range for our customers from passive components to a broad range of high-end electronic components.” “We believe that Yageo has the right capabilities and culture to support Telemecanique Sensors and its management team to deliver on their ambition and accelerate growth,” adds Schneider Electric chairman and CEO, Jean-Pascal Tricoire. “With a track record of successful M&A and company integration, Yageo is committed to support Telemecanique Sensors’ specialisation and unleash the full potential of the company and its team.” Yageo buys Telemecanique Sensors for €723m Emerson believes that its vision for the industrial automation architecture of tomorrowwill“catalyse”manufacturing EVENTS Southern Manufacturing & Electronics 23 7–9 February, 2023 – Farnborough, UK This annual show is aimed at people involved in design, engineering production and procurement. It showcases production hardware, components, consumables and technology for a wide range of industries. It also covers subcontracting services. Hannover Messe 17–21 April, 2023 – Hannover, Germany The industrial megashow is expecting to attract around 4,000 exhibitors with the theme for 2023 being Industrial Transformation – Making a Difference, and the partner country being Indonesia. The event will consist of seven areas including: Automation, Motion and Drives; Digital Ecosystems; Energy Solutions; and Compressed Air & Vacuum.