Emerson proposes to acquire remaining shares of AspenTech at $240 apiece
· CNA · Join:Emerson Electric made a proposal on Tuesday to acquire the stake it does not already own in AspenTech for $240 per share in cash, doubling down on its industrial automation push.
The proposal values AspenTech at $15.1 billion on an enterprise basis, Emerson said.
Emerson already owns about 55 per cent of shares in AspenTech, which it acquired in 2022.
Shares of the company rose about 4 per cent in premarket trade.
St. Louis, Missouri-based Emerson, founded a century ago selling fans and electric motors, has made a string of acquisitions and divestments over the past few years to reposition itself as a technology-focused company.
Additionally, a shift from companies modernizing their factory floors to include more automation has aided overall demand for companies such as Emerson.
The industrial conglomerate said the new unit will have a highly differentiated automation software business globally, addressing the entire lifecycle of automating complex operations, among other functions.
Emerson will also buy back about $2.0 billion of its common stock in fiscal year 2025, with about $1.0 billion of the repurchase expected to be completed in the first quarter of fiscal year 2025.
The company also said it commenced a process to explore strategic alternatives, including a cash sale, for its Safety & Productivity unit, which comprises the remaining businesses not related to its automation portfolio.
Separately, Emerson expects its annual 2025 profit per share to be between $5.85 and $6.05, the midpoint of which is above analysts estimates of $5.89, according to data compiled by LSEG.
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