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  • Lunar Asset Management N.V.

Blackstone Completes Acquisition of Majority Stake of Copeland, Formerly Emerson Climate Technologie

Blackstone, a leading private equity firm, has successfully completed the acquisition of a majority stake in Emerson Electric Co.'s Climate Technologies business, valuing the business at $14.0 billion. The newly formed standalone company, now known as Copeland, builds on a 100-year legacy of leadership in HVAC and refrigeration technology and solutions. This acquisition positions Copeland to drive innovation and transform the way people live and work by focusing on sustainable climate solutions. Let's explore the details and implications of this significant milestone in the HVACR industry.


A Legacy of Leadership and Innovation


Copeland, the new standalone business, has a rich heritage in the HVAC and refrigeration industries. With a strong reputation for engineering excellence, design innovation, and unmatched capabilities, Copeland is well-positioned to extend its leadership in the industry. As a separate entity, Copeland aims to develop new and integrated climate technology solutions that drive decarbonization, accelerate global electrification trends, and provide enhanced value to customers and end users.


Advancing Climate-Friendly Solutions


One of Copeland's key focuses will be improving the energy efficiency of heating and cooling solutions. The company's extensive product portfolio, including compressors, controls, thermostats, valves, software, and monitoring solutions, plays a vital role in reducing the environmental impact and carbon emissions of HVAC systems. Copeland will leverage its expertise and trusted brand to shape the future of climate technology, with particular emphasis on electric heat pumps and climate-friendly refrigerants, which are experiencing strong demand and global adoption.


Blackstone's Support for Growth


Blackstone's acquisition of a majority stake in Copeland marks a significant partnership aimed at accelerating the company's profitable long-term growth. Leveraging its extensive experience in corporate partnerships, Blackstone will work closely with Copeland and Emerson to drive innovation and deliver energy-efficient solutions. Blackstone's investment aligns with the industry's goal of carbon reduction and reinforces Copeland's position as the market leader in critical components for climate control solutions.


Financial Details and Ownership Structure


Under the terms of the purchase agreement, Blackstone now holds a controlling ownership interest of 60% in Copeland, up from the initially announced 55%. Emerson received approximately $9.7 billion in upfront, pre-tax cash proceeds at the transaction's close, along with a seller's note worth $2.25 billion and 40% non-controlling common equity ownership valued at $1.7 billion. This financial structure allows Emerson to participate in Copeland's future success while focusing on its portfolio transformation into a global automation leader.


Looking Ahead


Copeland will continue to operate from its headquarters in St. Louis while maintaining a global footprint to serve customers worldwide. With Blackstone's support and Emerson's retained interest, Copeland is poised to lead the HVACR industry with its sustainable climate solutions, cutting-edge technology, and commitment to decarbonization. The acquisition marks an important milestone for both Blackstone and Copeland, as they collaborate to shape the future of HVAC and refrigeration technology.


Conclusion


The completion of Blackstone's acquisition of a majority stake in Copeland, formerly Emerson Climate Technologies, signifies a new era of growth and innovation in the HVACR industry. As a standalone company, Copeland is well-equipped to continue its legacy of leadership in climate technology solutions. With a strong focus on sustainability, energy efficiency, and decarbonization, Copeland aims to transform how people live and work by delivering innovative and environmentally friendly HVAC and refrigeration solutions. The partnership with Blackstone and the continued involvement of Emerson position Copeland for a successful and impactful future in the industry.

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