Blackstone Completes Acquisition of Greater part Stake of Copeland, Previously Emerson Climate Systems

31 Could 2023

Rebrand to Copeland Displays 100-Year Legacy of Management in HVAC and Refrigeration Technological innovation and Options

Sustainable Local climate Answers Leader Positioned for Next Period of Development with Enhanced Aim on Innovation to Rework How Folks Are living and Work

Emerson Receives Roughly $9.7 Billion in Upfront, Pre-Tax Dollars Proceeds and $2.25 Billion Seller’s Be aware Retains 40% Common Equity Ownership

NEW YORK and ST. LOUIS, Could 31, 2023 – Blackstone (NYSE: BX) and Emerson (NYSE: EMR) now announced that non-public fairness cash managed by Blackstone (“Blackstone”) have accomplished the previously announced acquisition of a greater part stake in Emerson’s Climate Systems company in a transaction valuing the business at $14. billion. This closing marks a major milestone in the HVAC and refrigeration (HVACR) market leader’s journey to progress the up coming generation of local weather technologies. 

The new standalone business will be named Copeland – setting up on the brand’s 100-12 months legacy, global recognition and impact throughout the HVACR marketplace. As a standalone business focused on serving the global HVACR industry, Copeland’s solution portfolio contains market-foremost compressors, controls, thermostats, valves, software program and checking remedies for residential, professional and industrial buyers. Copeland experienced fiscal 2022 web sales of $5. billion.

“Copeland has extended been a pioneer in the HVAC and refrigeration industries with unmatched abilities in engineering, design and style and innovation,” claimed Ross B. Shuster, Chief Executive Officer of Copeland. “With the target that arrives from currently being a standalone business, and the help of our shareholders, Blackstone and Emerson, we plan to extend the company’s management situation in the field and develop new and built-in climate technological know-how options. The Copeland company is produced up of around 18,000 talented group associates, who are aligned and committed to producing systems and solutions that travel decarbonization at scale, speed up the global craze of electrification and provide greater worth for our clients and conclude end users.”

Copeland is poised to construct on its iconic manufacturer and trustworthy abilities to condition the upcoming of weather technological know-how. The company’s solutions, skills and innovation enjoy a essential role in improving the electrical power efficiency of heating and cooling methods – such as the fast expanding market place for electric heat pumps and climate-welcoming refrigerants, which are seeing strong demand and world-wide adoption presented their probable to lower the environmental effects and carbon emissions of HVAC systems.

“Copeland has grown into the sector chief in supplying vital components for household, industrial and industrial local weather handle remedies, and we are thrilled to support its upcoming section of progress as a globe-class standalone corporation,” explained Joe Baratta, International Head of Blackstone Personal Equity. “Leveraging Blackstone’s lengthy monitor-history of thriving massive-scale company partnerships, we look ahead to functioning with the Copeland and Emerson groups to accelerate the company’s financially rewarding, extensive-term progress. We’re self-assured in the runway in advance to progress Copeland’s industry primary posture by offering even a lot more innovative, power-economical alternatives to assistance its customers’ carbon reduction attempts.”

“We are delighted to complete this sizeable transaction, an crucial milestone in Emerson’s portfolio transformation into a cohesive world-wide automation chief,” stated Lal Karsanbhai, President and Main Govt Officer of Emerson. “The upfront proceeds from this transaction enable Emerson to progress our portfolio in interesting, increased-development automation marketplaces, while our remaining non-managing investment allows Emerson to reward from Copeland’s potential upside less than Blackstone’s possession, until eventually we exit the business enterprise. With our targeted portfolio, we are bringing extensive automation solutions, application and options to a numerous established of finish marketplaces, driving operational excellence and improving benefit creation for Emerson shareholders.”

Copeland will continue to operate from St. Louis, although maintaining a worldwide footprint to serve clients in Europe, Latin America, Asia, Center East and Africa.

Discover extra about Copeland’s sustainable answers at Copeland.com.

Ownership and Economical Particulars
Copeland is owned by a joint venture involving Blackstone and Emerson. Underneath the ultimate conditions of the invest in arrangement, Blackstone will have a managing ownership fascination of 60% of Copeland, up from 55% when the transaction was declared.

Pursuant to the phrases of the transaction, Emerson gained upfront, pre-tax dollars proceeds of around $9.7 billion at shut, an maximize of $.2 billion from when the transaction was declared specified Blackstone’s final decision to acquire an extra 5% of the popular equity. Emerson’s continuing investment decision in the small business is composed of a seller’s note with a encounter price of $2.25 billion and 40% non-controlling prevalent equity possession with a transaction worth of $1.7 billion.

Advisors
Centerview Associates LLC and Goldman Sachs & Co. LLC served as monetary advisors to Emerson, and Davis Polk & Wardwell LLP served as lawful counsel, and Baker McKenzie LLP served as worldwide lawful advisor. Barclays served as lead economic advisor to Blackstone. Guggenheim Securities, LLC and Evercore also furnished economical advisory expert services to Blackstone. The ABL revolver, TLB and Senior Secured Notes have been led by Wells Fargo, RBC Money Markets, LLC and Barclays, respectively. Simpson Thacher & Bartlett LLP acted as legal counsel to Blackstone.

About Copeland
Copeland, a world company of sustainable local climate alternatives, brings together group-leading brands in compression, controls, program and checking for heating, cooling and refrigeration. With best-in-course engineering and structure and the broadest portfolio of modulated solutions, we’re not just setting the regular for compressor leadership we’re pioneering its evolution. Combining our engineering with our sensible strength administration solutions, we can control, keep track of and enhance ailments to assist protect temperature-delicate goods about land and sea, whilst providing convenience in any space. By means of electrical power-efficient products, regulation-all set options and expertise, we’re revolutionizing the next generation of weather know-how for the improved. For a lot more facts, go to Copeland.com.

About Blackstone
Blackstone is the world’s premier choice asset manager. We find to develop optimistic economic effects and long-term benefit for our buyers, the corporations we make investments in and the communities in which we function. We do this by using amazing folks and versatile cash to aid companies solve troubles. Our $991 billion in assets under administration involve expense motor vehicles centered on non-public equity, genuine estate, public equity, infrastructure, existence sciences, growth fairness, liquid and non-public credit rating, genuine belongings and secondary cash, all on a global basis. Even more facts is obtainable at www.blackstone.com. Stick to @blackstone on LinkedIn, Twitter and Instagram.

About Emerson
Emerson (NYSE: EMR) is a world-wide technology and software firm supplying ground breaking options for the world’s necessary industries. Via its foremost automation portfolio, including its bulk stake in AspenTech, Emerson will help hybrid, approach and discrete manufacturers enhance operations, guard personnel, lower emissions and accomplish their sustainability targets. For additional info, visit Emerson.com.

Ahead-Wanting and Cautionary Statements
Statements in this push release that are not strictly historical may well be “forward-looking” statements, which entail hazards and uncertainties, and none of Blackstone, Emerson or Copeland undertakes any obligation to update any these types of statements to replicate later on developments. These dangers and uncertainties incorporate the companies’ capacity to correctly complete on the conditions and situations contemplated, and the financial effects of, the proposed transactions referenced herein, the scope, duration and supreme impacts of the COVID-19 pandemic and the Russia-Ukraine conflict, as very well as economic and currency ailments, market place demand from customers, including associated to the pandemic and oil and gasoline cost declines and volatility, pricing, defense of intellectual property, cybersecurity, tariffs, competitive and technological elements, inflation, between many others, as established forth in Blackstone and Emerson’s most latest Once-a-year Reviews on Kind 10-K and subsequent experiences filed with the SEC.

Contacts

For Copeland:

Libby Panke
[email protected]
314-719-7521

For Blackstone: 

Matt Anderson
[email protected]
212-390-2472

Mariel Seidman-Gati
[email protected]
646-482-3712

For Emerson:

Investors

Colleen Mettler
314-553-2197

Media 

Jim Golden / Joseph Sala / Tanner Kaufman
Joele Frank, Wilkinson Brimmer Katcher 212-355-4449