The Emerson Climate Technologies business will be named Copeland building on the brand’s 100-year legacy, recognition and influence across the HVACR industry.
Private equity firm Blackstone have completed their acquisition of a majority stake in Emerson’s Climate Technologies business in a transaction valued at $US14 billion.
This closing marks a significant milestone in the HVAC and refrigeration (HVACR) industry leader’s journey to advance the next generation of climate technologies, the company said in a statement yesterday.
As a standalone company focused on serving the global HVACR market, Copeland’s product portfolio includes market-leading compressors, controls, thermostats, valves, software and monitoring solutions for residential, commercial and industrial customers.
Copeland had fiscal 2022 net sales of $US5 billion, according to company CEO, Ross B. Shuster.
“Copeland has long been a pioneer in the HVAC and refrigeration industries with unmatched capabilities in engineering, design and innovation,” Shuster said.
“With the focus that comes from being a standalone company, and the support of our shareholders, Blackstone and Emerson, we plan to extend the company’s leadership position in the industry and develop new and integrated climate technology solutions.
“The Copeland business is made up of over 18,000 talented team members, who are aligned and committed to developing technologies and solutions that drive decarbonization at scale, accelerate the global trend of electrification and deliver greater value for our customers and end users.”
Shuster said Copeland is poised to build on its iconic brand and trusted expertise to shape the future of climate technology.
The company’s products, expertise and innovation play a key role in improving the energy efficiency of heating and cooling solutions – including the rapidly growing market for electric heat pumps and climate-friendly refrigerants, which are seeing strong demand and global adoption given their potential to reduce the environmental impact and carbon emissions of HVAC systems.
Global head of Blackstone Private Equity, Joe Baratta, said Copeland has grown into the market leader as a supplier of critical components for residential, commercial and industrial climate control solutions, and Blackstone is thrilled to support its next phase of growth as a world-class standalone company.
“Leveraging Blackstone’s long track-record of successful large-scale corporate partnerships, we look forward to working with the Copeland and Emerson teams to accelerate the company’s profitable, long-term growth,” he said.
“We’re confident in the runway ahead to advance Copeland’s industry leading position by delivering even more innovative, energy-efficient solutions to support its customers’ carbon reduction efforts.”
Emerson president & CEO, Lal Karsanbhai, said this transaction is an important milestone in Emerson’s portfolio transformation into a cohesive global automation leader.
“The upfront proceeds from this transaction allow Emerson to advance our portfolio in attractive, higher-growth automation markets, while our remaining non-controlling investment enables Emerson to benefit from Copeland’s future upside under Blackstone’s ownership, until we exit the business,” he said.
“With our focused portfolio, we are bringing comprehensive automation products, software and solutions to a diverse set of end markets, driving operational excellence and enhancing value creation for Emerson shareholders.”
Copeland will continue to operate from St. Louis in the US while maintaining a global footprint to serve customers in Europe, Latin America, Asia, Middle East and Africa.