Emerson Electric, Rosemont, Ill., announced this week that it has closed the transaction acquiring SPX Corp.’s 44.5% minority interest in EGS Electrical Group, giving it 100% ownership of the business. It is renaming the unit Appleton Group.
Kerry Nedic, V.P. of marketing for Emerson Industrial Automation/Appleton Group, Rosemont, Ill., told Electrical Marketing in an email that renaming the business unit as Appleton Group “better reflects how our customers identify with us.” “We are known for brands that provide durability, safety and quality— Appleton, of course, leading the way,” she said. “Our portfolio also includes some of the most highly regarded electrical products in the business: SolaHD, EasyHeat, Nelson Heat Trace, O-Z/Gedney, Nutsteel, Nelson Firestop and McGill Electrical. We recognized that the Appleton name has equity and familiarity in our industry.”
Emerson and SPX have jointly held the business since 1997, with Emerson responsible for operational management and control. Results for the business, which had annual revenues in 2013 of more than $500 million, have been consolidated in Emerson's Industrial Automation segment.
As announced in December (See Electrical Marketing, Dec. 6, 2013), the transaction allows Emerson to focus on emerging growth opportunities in the oil, gas and chemical industries through its process management and international channels. Market repositioning actions to pursue these opportunities are already underway, including renaming the business unit to Appleton Group, reflecting its most recognized brand. The transaction is expected to be slightly accretive to earnings per share in 2014.
"We will continue to focus on innovation and service, expand new product introductions and find ways to grow in our key markets," said Russ Kerstetter, new president of Appleton Group, in a press release. "We are very excited about the future of the new Appleton Group."