Emerson Electric To Acquire Afag Holding: 'Ideally Suited To Provide Improved Energy Efficiency'

Emerson Electric Co EMR penned a deal to acquire Afag Holding AG for an undisclosed amount.

Afag deals in electric linear motion, feeding, and handling automation solutions.

Post closure, Afag will be included in Emerson's Discrete Automation segment.

The transaction will boost Emerson's factory automation capabilities and create a leading motion portfolio that combines Afag's electric linear motion solutions with Emerson's pneumatic motion technology. 

The electric linear motion segment will boost Emerson's market by over $9 billion and is projected to improve by mid-single digits annually.

"As discrete and hybrid customers continue to accelerate electrification across their manufacturing processes, Afag's technology is ideally suited to provide improved energy efficiency and performance gains. We look forward to combining Afag's motion capabilities with our existing pneumatic leadership, creating a unique and differentiated solution for our customers. Afag and its employees will play an important role in enhancing Emerson's strength and innovation in factory automation." said Ram Krishnan, chief operating officer of Emerson. 

The transaction is projected to close by the end of Emerson's fiscal 2023, subject to customary closing conditions.

Emerson held cash and equivalents of $9.96 billion as of June 30, 2023.

On Wednesday, Emerson inked a definitive agreement to acquire FLEXIM Flexible Industriemeßtechnik GmbH (Flexim) for an undisclosed amount.

Price Action: EMR shares were up 0.8% at $96.80 at the time of publication Thursday.

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