New York-based Blackstone Private Equity on May 31 completed the acquisition announced last fall of a majority stake of U.S.-based manufacturer Emerson’s Climate Technologies to establish the new standalone company called Copeland, which will operate in St. Louis, Missouri.
Valued at US$14 billion (€13 billion), Copeland – a 100-year-old global HVAC brand – manufacturers compressors, controls, valves and other technologies for residential, commercial and industrial applications, including those using natural refrigerants like CO2 (R744) and propane (R290). Copeland had net sales of US$5 billion (€4.7 billion) in fiscal year 2022 and has over 18,000 employees.
Copeland-brand scroll compressors were recently incorporated into CO2 refrigeration racks separately produced by Arneg and SCM Frigo, which were both showcased at EuroShop 2023 in Düsseldorf, Germany.
Emerson, which received US$9.7 billion (€9 billion) in pre-tax, upfront cash and a US$2.25 billion (€2.1 billion) seller’s note in the transaction, retains 40% common equity ownership in Copeland. Blackstone acquired 60% controlling ownership interest in Copeland, up 5% from the initial transaction announcement.
“With the focus that comes from being a standalone company, and the support of our shareholders, Blackstone and Emerson, we plan to extend the company’s leadership position in the industry and develop new and integrated climate technology solutions,” said Ross B. Shuster, CEO of Copeland.
Copeland seeks to advance the next generation of sustainable and energy-efficient heating and cooling technologies to “drive decarbonization at scale and accelerate the global trend of electrification,” Shuster added, citing the growing markets for electrical heat pumps and climate-friendly refrigerants.
“Copeland has grown into the market leader in supplying critical components for residential, commercial and industrial climate control solutions, and we are thrilled to support its next phase of growth as a world-class standalone company,” said Joe Baratta, Global Head of Blackstone Private Equity.
“The upfront proceeds from this transaction allow Emerson to advance our portfolio in attractive, higher-growth automation markets, while our remaining non-controlling investment enables Emerson to benefit from Copeland’s future upside under Blackstone’s ownership, until we exit the business,” said Lal Karsanbhai, President and CEO of Emerson.
“We plan to extend the company’s leadership position in the industry and develop new and integrated climate technology solutions.”
Ross B. Shuster, Chief Executive Officer of Copeland
