Emerson Electric Co. said it would sell its Chromalox industrial heating business to J.P. Morgan Chase & Co.'s private equity group JPMorgan Partners for $165 million. At press time, St. Louis-based Emerson said it expected the deal to close in December.
“We are continuing our strategy of repositioning Emerson into faster-growth areas to deliver enhanced shareholder value,” said David N. Farr, chief executive officer. “While Chromalox is an outstanding company, it no longer is a strategic fit with Emerson's overall direction. The business and organization should have greater growth opportunities under new ownership.”
Chromalox, with annual sales of approximately $150 million, designs and manufactures industrial electric heating and control products, and operates multiple manufacturing, engineering, warehousing and sales locations throughout North America and Europe.
“With its unique competitive position and its exceptional management team, we believe Chromalox is ideally positioned for strong future growth and profitability,” said Christopher Behrens, general partner of JPMorgan Partners.
JPMorgan Partners (JPMP), formerly Chase Capital Partners, is a global partnership with over $25 billion under management. It is a provider of private equity and has closed over 1,800 individual transactions since its inception in 1984. JPMorgan Partners' primary limited partner is J.P. Morgan Chase & Co., one of the largest financial institutions in the United States.
Emerson's sales in fiscal 2001 were $15.5 billion. Partners' primary limited partner is J.P. Morgan Chase & Co., one of the largest financial institutions in the United States.
Emerson's sales in fiscal 2001 were $15.5 billion.