Siemens ag has approached U.S. automation equipment maker Emerson Electric Co to buy its network-power business, a person familiar with the matter said. Emerson Expects to sell the transaction for $4 billion.
A sale would allow Emerson to sell network Power services in one go rather than gradually divestment, which would allow the company to focus on operating the central industrial automation business, as well as the commercial and home heating and air-conditioning units.
People familiar with the matter said Emerson is in the early stages of talks with Siemens about spinning off network Dynamics.
Emerson Electric is also in talks with private Equity firms, including Platinum Equity LLC, the person briefed on the matter said. Other companies have also shown a taste. In June of last year, Emerson indicated that it would seek to spin off network-powered transactions and find solutions for the remaining non-central transactions.
No decision has been made on what Emerson will do and a sale may not come until later this year, the people said. The source spoke on the condition of anonymity because the discussions were confidential.
The remaining non-central transactions Emerson expects to sell include motors and drives, power generation, and the remaining storage transactions. The assets' annual earnings before interest, tax, depreciation and amortization (EBITDA) total about $200 million, sources told the foreign media.
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