You might also like
Emerson Electric Co. is a global technology and software company that delivers innovative solutions across various end markets, including process, hybrid, and discrete industries . The company operates through two main business groups: Intelligent Devices and Software and Control, offering a wide range of products such as control valves, intelligent instrumentation, solenoid valves, and asset optimization software . Emerson's fiscal 2024 sales reached $17.5 billion, with significant growth driven by its Test & Measurement acquisition and strong performance in its Intelligent Devices and Software and Control segments .
-
Intelligent Devices
- Encompasses several segments including Final Control, Measurement & Analytical, Discrete Automation, and Safety & Productivity.
- Final Control - Provides control valves and regulators, crucial for process and hybrid industries.
- Measurement & Analytical - Offers intelligent instrumentation for measuring physical properties of liquids or gases.
- Discrete Automation - Includes solenoid valves and pneumatic equipment primarily for discrete industries.
- Safety & Productivity - Delivers tools for infrastructure and safety.
-
Software and Control
- Comprises Control Systems & Software, Test & Measurement, and AspenTech segments.
- Control Systems & Software - Provides systems that control plant processes.
- Test & Measurement - Offers automated test and measurement systems, enhanced by the acquisition of National Instruments.
- AspenTech - Specializes in asset optimization software for industrial manufacturers.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
S. L. Karsanbhai ExecutiveBoard | President and Chief Executive Officer | None | CEO since February 2021; previously Executive President of Automation Solutions and President of Measurement & Analytical. | View Report → |
L. A. Flavin Executive | SVP, Chief Transformation and Compliance Officer | Board Member at Caleres, Inc., BJC Healthcare, and U.S. Chamber of Commerce. | Joined Emerson in 1998; Chief Compliance Officer since 2011 and Chief Transformation Officer since 2023. | |
M. H. Train Executive | SVP and Chief Sustainability Officer | Chairman of the Board of Trustees at Ranken Technical College; Member of Cornell University’s Advisory Council. | Chief Sustainability Officer since March 2021; previously President of Emerson and Executive President of Automation Solutions. | |
M. J. Baughman Executive | EVP, CFO, and Chief Accounting Officer | None | CFO since May 2023; previously VP and Controller at Emerson and held finance roles at Baxter International. | |
M. Tang Executive | SVP, Secretary, and Chief Legal Officer | Board Member of Minority Corporate Counsel Association. | Joined Emerson in January 2024; previously General Counsel at Agilent Technologies. | |
N. Piazza Executive | SVP and Chief People Officer | Board Member of Juvenile Diabetes Research Foundation (St. Louis chapter). | Chief People Officer since August 2023; previously VP of Global Talent and HR Operations. | |
P. Zornio Executive | SVP and Chief Technology Officer | Board Member of Emerson Ventures. | CTO since December 2022; joined Emerson in 2006 and led development of the Plantweb digital ecosystem and IIoT strategies. | |
R. R. Krishnan Executive | Executive Vice President and COO | None | COO since February 2021; previously President of Final Control and Flow Solutions. | |
V. Ramnath Executive | SVP and Chief Marketing Officer | None | Chief Marketing Officer since June 2023; previously President of Middle East & Africa and VP of Asia Pacific for Measurement & Analytical. | |
Calvin G. Butler Board | Director | CEO of Exelon Corporation; Chair of Cal Ripken Sr. Foundation; Vice Chair of Edison Electric Institute. | Director since August 2024; extensive leadership in utilities industry, currently CEO of Exelon. | |
Gloria A. Flach Board | Director | Board Advisor at Loyola University, Maryland. | Director since 2017; former COO of Northrop Grumman. | |
James M. McKelvey Board | Director | Co-Founder of Block, Inc.; Chair of St. Louis Federal Reserve Board; Trustee at Washington University. | Director since May 2023; entrepreneur with expertise in technology and innovation. | |
James S. Turley Board | Chair of the Board | Director at Citigroup, Northrop Grumman, and Precigen; Officer of Boy Scouts of America. | Chair of Emerson's Board since 2013; retired Chairman and CEO of Ernst & Young. | |
Leticia Goncalves Board | Director | President of ADM Ventures; Board Member at Believer Meats. | Director since May 2023; extensive experience in innovation and sustainability. | |
Lori M. Lee Board | Director | CEO of AT&T Latin America; Global Marketing Officer at AT&T. | Director since 2018; extensive experience in telecommunications and marketing. | |
Martin S. Craighead Board | Director | Director at Texas Instruments. | Director since 2019; former CEO and Chairman of Baker Hughes. | |
Matthew S. Levatich Board | Director | Member of Dean’s Advisory Council at Northwestern University. | Director since 2012; former CEO of Harley-Davidson. | |
William H. Easter III Board | Director | Director at Delta Airlines and Aurora Sustainable Lands; Board Member of Memorial Hermann Health System. | Director since 2020; extensive experience in energy and corporate governance. |
-
With the announcement to fully acquire AspenTech and your expectation of immediate cost efficiencies and enhanced operational performance, what are the specific risks and challenges you anticipate in integrating AspenTech into Emerson, and how do you plan to mitigate potential disruptions to AspenTech's existing customer relationships?
-
Given that nuclear represents about 20% of your overall power business, can you elaborate on any regulatory or technological challenges you face in the nuclear sector, especially as you participate globally, and how might these challenges impact your growth projections in power generation for 2025?
-
You are expecting a recovery in discrete markets in the first half of 2025 leading to mid-single-digit sales growth, but with automotive markets, particularly EV, remaining weak, how confident are you in this forecast, and what strategies do you have in place if the recovery in discrete markets does not materialize as expected?
-
Considering you have not baked in a significant chemical recovery in your plan and are watching China cautiously due to slowdown, how would prolonged weakness in the chemical sector and China impact your 3% to 5% growth guidance, and what contingency plans do you have in place?
-
While you plan to repurchase approximately $2 billion of common stock and return about 100% of guided free cash flow to shareholders in 2025, at the same time pursuing significant acquisitions and divestitures, how do you reconcile these substantial capital allocations with maintaining your A2A credit rating, and are there risks to your balance sheet or credit metrics?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Aspen Technology, Inc. | 2025 | Emerson will acquire all outstanding shares of AspenTech not already owned, valuing the company at a fully diluted market capitalization of $17.0 billion and an enterprise value of $16.8 billion, with the transaction expected to close in the first half of 2025 and financed with cash on hand and debt financing. |
National Instruments Corporation | 2023 | Emerson's acquisition of National Instruments was completed on October 11, 2023, in a deal with an equity value of $8.2 billion that expanded Emerson’s presence in automation and software-connected test and measurement systems. |
Flexim | 2023 | Emerson acquired Flexim for $705 million (net of cash acquired) to enhance its Measurement & Analytical segment, gaining clamp-on ultrasonic technology capabilities and recognizing $429 million in goodwill. |
Afag | 2023 | As part of a $705 million combined acquisition with Flexim, Emerson acquired Afag, a leader in electric linear motion and automation solutions, to strengthen its Discrete Automation segment and complement its existing motion offerings. |
Micromine | 2022 | AspenTech (an Emerson subsidiary) acquired Micromine for AU $900 million (approximately $623 million USD), announced on July 27, 2022, to incorporate advanced mining design and operational solutions in line with Emerson’s growth in automation and software markets. |
Three additional businesses | 2022 | Emerson acquired three additional businesses for $130 million (net of cash acquired), including two in the Automation Solutions segment and one in the AspenTech segment, with combined annual sales of approximately $40 million, further broadening its product and service portfolio. |
Recent press releases and 8-K filings for EMR.
- Emerson completed the acquisition of all outstanding shares of AspenTech through a tender offer and subsequent merger, making AspenTech a wholly owned subsidiary of Emerson.
- The tender offer was set at $265.00 per share, with approximately 72% of shares tendered prior to merger completion.
- The acquisition marks a significant portfolio transformation with leadership changes, including the retirement of AspenTech’s CEO and the appointment of Vincent M. Servello as President, while the CFO continues in his role.
- Emerson Electric Co. filed an 8-K on March 12, 2025 to report the completion of its acquisition of AspenTech through a merger agreement, following a successful tender offer at $265 per share.
- The tender offer received approximately 72% of AspenTech’s outstanding shares (excluding certain affiliates), meeting the conditions required for the merger.
- All remaining merger conditions were satisfied or waived, leading to AspenTech’s conversion and cash payment to shareholders as stipulated in the agreement.
- Emerson (NYSE: EMR) extended its tender offer expiration to 5:00 p.m. ET on March 11, 2025 to accommodate adjustments following the S&P MidCap 400 index change.
- The offer is for acquiring all outstanding shares of AspenTech not already owned by Emerson at a price of $265 per share, which is described as the best and final offer.
- As of March 7, 2025, approximately 6,715,211 shares had been validly tendered, with no need for previously tendered shares to be re-tendered.
- Emerson Electric Co. announced that, under its merger agreement with Aspen Technology, Inc. and its subsidiary Emersub CXV, Inc., the tender offer for AspenTech shares has been extended to 5:00 p.m. ET on March 11, 2025, subject to specified conditions.
- The extension is contingent upon the resolution of SEC comments on related offer documents and the satisfaction or waiver of offer conditions, ensuring that the offer remains valid for further review.
- The filing includes forward-looking statements that highlight the potential risks and uncertainties associated with the proposed acquisition, emphasizing the cautious approach towards integration and regulatory reviews.