Emerson has been constantly seeking innovation and breakthroughs. In order to better serve global customers, enhance factory automation capabilities and automation leadership, Emerson recently announced mergers and acquisitions of Flexim and Afag, respectively. These two important business acquisitions mark the further consolidation and enhancement of Emerson’s leadership position in the field of automation.
Emerson Announces Merger and Acquisition of Flexim
Further enhance automation leadership
The innovative ultrasound technology acquired will strengthen Emerson’s intelligent device product portfolio.
On August 16th, Emerson announced that it had reached a final agreement to acquire FLEXIM Flexible Industrieme Technik GmbH (hereinafter referred to as “Flexim”), a globally leading liquid, gas, and steam external clamp ultrasonic flow measurement company.
Flexim is headquartered in Berlin, Germany, with a total installation of over 100000 flowmeters and approximately 450 employees. The addition of Flexim has brought Emerson highly differentiated and complementary technologies as well as strong customer relationships. Flexim provides high-precision and low-maintenance external clamp ultrasonic flow measurement technology, serving a wide range of attractive end markets, including chemical, water and sewage treatment, life sciences, food and beverage, and power generation. This transaction will expand Emerson’s automation product portfolio and enhance measurement capabilities, enhancing the strength of existing Coriolis, differential pressure, magnetic, and vortex flow measurements. Thanks to favorable terminal market growth and technological leadership, the global external clamp ultrasonic flowmeter market is expected to grow at a high single digit rate annually for the long term. After the transaction is completed, Flexim’s Berlin headquarters plans to become Emerson’s center of excellence for ultrasonic flow measurement.
We are very excited to further expand Emerson’s capabilities by introducing Flexim’s leading external clamp ultrasonic measurement technology, which is a powerful supplement to our intelligent device portfolio. Flexim has brought Emerson an exciting new technology that can drive our rapid growth. The combination of Emerson’s extensive measurement product portfolio and Flexim’s innovative technology will further enhance our ability to serve various industries The value created by our customers. We look forward to welcoming skilled and dedicated Flexim employees to join Emerson and continue to play a crucial role in driving business success
——Ram Krishnan
We are honored to join Emerson, as both cultures place great emphasis on innovation and focus on technology and research and development. This transaction will enable Flexim to leverage Emerson’s leading position and outstanding business performance in the global intelligent device field to provide more comprehensive solutions to a wider range of customers. In the process of working together with Emerson, we will continue to serve customers and fully utilize our comprehensive strength to solve problems Required measurement requirements
——Jens Helpert
CEO and Cofounder of Flexim
According to customary delivery conditions, this transaction is expected to be completed by the end of Emerson’s fiscal year 2023. Flexim is expected to increase Emerson’s sales growth, gross profit margin, and adjusted pre tax profit. The transaction terms were not disclosed. Flexim will be reported in Emerson’s measurement and analysis business.
Evercore serves as the financial advisor for this transaction, and Freshfields Bruckhaus Deringer LLP serves as the legal advisor.
Emerson reached an agreement to acquire Afag
Accelerate the upgrade of factory automation capabilities
This acquisition will increase Emerson’s factory automation services market by $9 billion and expand its scope in key growth markets in the discrete and hybrid sectors.
On August 17th, Emerson announced that it had reached a final agreement to acquire innovator Afag Holding AG (hereinafter referred to as “Afag”) in the field of electric linear transmission, feeding, and handling automation solutions.
Afag’s headquarters are located in Zell, Switzerland, bringing industry advanced technology and innovation to Emerson. This transaction will enhance Emerson’s strength in factory automation, which is also one of Emerson’s four priority areas, and create a leading sports portfolio that combines Afag’s electric linear transmission solution with Emerson’s aerodynamic motion technology. Afag serves attractive and growing end users in various fields, including battery production, automotive, packaging, healthcare, life sciences, and electronics. The electric linear transmission business will increase the market size served by Emerson by over 9 billion US dollars, and is expected to grow at a median annual rate, promoting Emerson’s organic growth in achieving long-term profitability.
Afag brings exciting technology that will enable Emerson to accelerate the growth of its existing $900 million factory automation business. As discrete and hybrid customers continue to drive electrification in their manufacturing processes, Afag’s technology can provide customers with advantages in improving energy efficiency and performance benefits. We look forward to combining Afag’s transmission capabilities with our existing pneumatic leading technology to create differentiation for our customers The solution. Afag and its employees will play an important role in enhancing the strength and innovation of Emerson factory automation
——Ram Krishnan
Emerson Chief Operating Officer
We are honored to join Emerson and further expand our global influence on the basis of its existing position in factory automation. Our customers rely on Afag’s key customized systems, and we use this opportunity to stimulate more vitality and create more comprehensive comprehensive solutions for their transmission needs. We share the same vision as Emerson – to provide complete solutions for key industries Looking forward to being a member of Emerson and continuing to promote long-term success
——Adrian Fuchser
Afag CEO
This transaction is expected to be completed by the end of Emerson’s fiscal year 2023, subject to customary delivery conditions, including obtaining regulatory approval. The transaction terms were not disclosed. Afag will be reported in Emerson’s discrete automation business.
In this transaction, Bryan Cave Leighton Paisner LLP served as Emerson’s legal advisor.