LONDON, UK / ACCESSWIRE / April 20, 2018 / Active-Investors.com has just released a free research report on Emerson Electric Co. (NYSE: EMR). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=EMR as the Company's latest news hit the wire. On April 18, 2018, the Company announced that it has agreed to acquire the Tools and Test Equipment ("Tools & Test") business from Textron Inc. (NYSE: TXT). The all-cash deal is valued approximately $810 million. Textron announced the divestment when reporting its Q1 2018 results. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Emerson Electric and Textron most recent news are on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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www.active-investors.com/registration-sg/?symbol=TXT

Commenting on the acquisition of Textron's Tools & Test business, David N. Farr, Chairman, and CEO of Emerson, said:

"This acquisition significantly contributes to Emerson's investment strategy of adding complementary businesses that broaden our served markets and add key capabilities to meet the evolving needs of our customers and drive premium growth. The strong strategic fit with Ridge Tool provides a meaningful value creation opportunity for Emerson."

Robert T. Sharp, Executive President of Emerson Commercial & Residential Solutions, added:

"The addition of Greenlee and Klauke complements our iconic RIDGID brand, creates a leading technology portfolio, expands our geographic presence and strengthens our position in the growing global professional tools marketplace."

Details of the acquisition

The Textron's Tools & Test business manufactures electrical and utility tools, diagnostics, and test and measurement instruments. The Tools and Test business has a strong global distribution network and includes brands like Greenlee, Greenlee Communications, Greenlee Utility, HD Electric, Klauke, Sherman+Reilly, and Endura.

Tools & Test is headquartered in Rockford, Illinois and has 11 manufacturing locations worldwide and a team of 2,300 people. The sales for the Tools & Test business was $470 million in FY17.

Emerson expects to close the deal within next 60 days subject to receiving regulatory approvals and fulfillment of other closing conditions.

Textron plans to utilize the proceeds from the divestment for additional share repurchases to offset the loss of earnings due to the sale of Tools & Test business. Accordingly, Textron's Board has approved the repurchase of 40 million shares of the Company.

Benefits of the Acquisition

Emerson plans to integrate the Tools & Test business into its Tools & Home Products Group. The Tools & Test business is highly complementary to Emerson's Ridge Tool Company's business. The combination of these two businesses will create a $1 billion global professional tools business with an extensive portfolio of products aimed at mechanical, electrical and plumbing contractors.

Emerson believes that by combining Tools & Test's electrical offerings with its RIDGID portfolio of products for the mechanical and plumbing sectors, it will be able to strengthen its leadership position in the high growth segment of professional trades. Emerson will also gain access to Tools & Test brings offerings in diagnostics and other digital technologies which will complement with RIDGID's offerings. Tools & Test has a strong presence in European markets which combined with RIDGID's footprint outside Europe will enable Emerson in fulfilling its goal of becoming the global tool of choice for the professional contractor.

Emerson expects that the deal will be immediately accretive to its cash flows while the deal would be accretive to its earnings in fiscal 2019.

About Textron Inc.

Providence, Rhode Island-based Textron is a multi-industry company that produces advanced aviation, defense, and industrial products. Some of the popular brands of the Company include Bell Helicopter, Cessna, Beechcraft, Hawker, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, Textron Off Road, Arctic Cat, Textron Systems, and TRU Simulation + Training.

The $14.2 billion Company had an extensive network of manufacturing, sales, and service facilities in more than 25 countries and is supported by a team of 35,000 people.

About Emerson Electric Co.

Founded in 1890, St. Louis, Missouri-based Emerson is a diversified global technology and engineering Company. The Company's business is divided into two core business verticals - Automation Solutions and Commercial & Residential Solutions. The Company has a global presence with offices and manufacturing facilities across US, Canada, Europe, Russia, Latin America, Middle East/Africa. and Asia.

Emerson is supported by a global team of over 81,500 employees. The Company's sales were $15.3 billion in FY17.

Stock Performance Snapshot

April 19, 2018 - At Thursday's closing bell, Emerson Electric's stock was marginally up 0.07%, ending the trading session at $70.67.

Volume traded for the day: 2.27 million shares.

Stock performance in the last month ? up 0.17%; previous six-month period ? up 7.93%; past twelve-month period ? up 21.41%; and year-to-date - up 1.41%

After yesterday's close, Emerson Electric's market cap was at $44.72 billion.

Price to Earnings (P/E) ratio was at 27.88.

The stock has a dividend yield of 2.75%.

The stock is part of the Industrial Goods sector, categorized under the Industrial Electrical Equipment industry.

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