Emerson Electric Co.EMR , the premium industrial goods company, has completed the divestiture of its InterMetro business to Ali Group for an undisclosed amount. Emerson's main motive behind this sale is to strategically restructure its portfolio to enhance focus on core markets and diminish exposure to the non-core domain.
Ali Group is an Italian corporation that designs, develops and sells a comprehensive line of commercial and institutional foodservice equipments to service the industry's top restaurateurs, hoteliers, among other. JPMorgan Chase & Co. JPM served Emerson as an exclusive financial advisor for this transaction.
Notably, InterMetro business of the company is headquartered in Wilkes-Barre, PA and has over 1,500 employees worldwide. The divested business falls under Emerson's Commercial & Residential Solutions segment, which is the only segment that delivered sales increase, although marginal, aided by a favorable U.S. market scenario in the last reported quarter.
Of late, Emerson seems to be streamlining its operations to aid positive revenue growth. Earlier this month, the company completed the buyout of premium flame and open path gas detectors manufacturer Spectrex Inc for an undisclosed amount. This acquisition, bringing with it a complete line of flame, gas and ultrasonic leak detector solutions extensively deployed for safety monitoring, will be particularly conducive to the company's operating arm, Emerson Process Management.
As a matter of fact, troubled by certain issues in business, Emerson Electric currently carries a Zacks Rank #5 (Strong Sell). Reduction of customer expenditure in the oil & gas market and appreciation of the U.S. currency had adversely affected the company's earnings and revenues in second-quarter fiscal 2015. Moreover, the company anticipates these issues to persist and continue affecting its financials in the upcoming quarters