Emerson Electric Is Considering $1 Billion Sale of Therm-O-Disc Unit
(Bloomberg) -- Industrial conglomerate Emerson Electric Co. is considering a sale of thermostat maker Therm-O-Disc that could value the unit at about $1 billion, according to people familiar with the matter.
Emerson is working with an adviser to run a sale process for the unit, said the people, who asked not to be identified because they weren’t authorized to speak publicly. Therm-O-Disc, which is generating about $75 million a year in earnings before interest, taxes, depreciation and amortization, is expected to attract interest from private equity firms, the people said.
The company hasn’t made a final decision on pursuing a sale and its plans could still change, they said.
A representative for St. Louis-based Emerson declined to comment.
The decision to consider a sale comes as new Chief Executive Officer and President Lal Karsanbhai looks to transform the company into a more technology-focused enterprise following the retirement of David Farr. The company agreed this month to combine its industrial software business with Aspen Technology Inc. in a deal valued at about $11 billion that gives Emerson majority control of the new company.
Therm-O-Disc makes a range of products including temperature sensors, snap controls and sensors to detect the level of gasoline vapors in the air, according to its website.
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