![]() The deal values the unit at 12.7 times its cash flow in fiscal 2022, a premium to peers such as manufacturers of components and industrial companies that own HVAC businesses, which trade at roughly 10.5 and 11.5 times, respectively. The Climate Technologies business, which will be structured as a joint venture, generated net sales of $5 billion in fiscal 2022. The deal, expected to close in the first half of 2023, is the latest in a flurry of private equity transactions this year as a selloff in equities on recession worries hammered valuations. ![]() "(Emerson) is significantly re-orienting its portfolio to result in a more focused and potentially higher growth enterprise," Citi Research analysts said. The debt will be equivalent to about four times the new company's annual cash flow. Emerson, which will retain about 45% stake in the climate tech unit, said Blackstone and co-investors Abu Dhabi Investment Authority and Singapore state fund GIC would contribute $4.4 billion in equity toward the deal, which would be supplemented by $5.5 billion of debt financing.
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