Emerson Electric Co has tapped Goldman Sachs Group Inc to sell its power transmission solutions business in a deal that could be worth more than $1 billion, people familiar with the matter said. The industrial conglomerate is preparing for an auction in the fall and is in the early stages of contacting potential buyers, including other industrial companies and takeover firms, the people said on Wednesday.The power transmission business is estimated to have earnings before interest, tax, depreciation and amortization of around $120 million, and could be valued at about 10 times that amount in a sale, some of the people added.Emerson said in June that it was evaluating strategic alternatives for the power transmission unit and would announce plans for the establishment by the year-end.A spokesman did not immediately respond to a request for comment, while Goldman Sachs declined to comment.
Emerson Electric Co. (Emerson) is a diversified global technology company. Shares of EMR traded higher by 0.95% or $0.59/share to $62.83. In the past year, the shares have traded as low as $60.14 and as high as $70.66. On average, 2906790 shares of EMR exchange hands on a given day and today's volume is recorded at 1627668.
The Goldman Sachs Group, Inc. (Goldman Sachs), is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Shares of GS traded higher by 0.23% or $0.39/share to $172.72. In the past year, the shares have traded as low as $151.33 and as high as $181.13. On average, 2421050 shares of GS exchange hands on a given day and today's volume is recorded at 1196502.
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