Emerson is always looking for innovation and breakthroughs, and in order to better serve its global customers, enhance its factory automation capabilities and automation leadership, Emerson recently announced the acquisition of Flexim and Afag, respectively. These two important business acquisitions mark the further consolidation and enhancement of Emerson’s leadership in the field of automation.
Emerson announces acquisition of Flexim
Further enhance automation leadership
The acquisition of innovative ultrasonic technology will strengthen Emerson’s smart device portfolio.
On August 16, Emerson announced that it has entered into a definitive agreement to acquire FLEXIM Flexible Industriemßtechnik GmbH (” Flexim “), a global leader in external clip-on ultrasonic flow measurement for liquids, gases and vapors.
Flexim is headquartered in Berlin, Germany, with a total installed flow meter base of more than 100,000 units and around 450 employees. The addition of Flexim brings Emerson a highly differentiated and complementary set of technologies and strong customer relationships. Flexim offers high-precision, low-maintenance, clip-on ultrasonic flow measurement technology that serves a wide range of attractive end markets, including chemical, water and wastewater, life sciences, food and beverage, and power generation. The transaction will expand Emerson’s automation portfolio and strengthen measurement capabilities, enhancing existing Coriolis, differential pressure, magnetic and vortex flow measurement capabilities. Thanks to favorable end-market growth and technology leadership, the global external clamp-on ultrasonic flowmeter market is expected to grow at an annual rate of high single digits over the long term. Following the completion of the transaction, 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 with the introduction of Flexim’s leading external clip-on ultrasonic measurement technology, which is a strong complement to our smart device portfolio, and Flexim brings an exciting new technology to Emerson that will drive our rapid growth.” The combination of Emerson’s broad measurement portfolio and Flexim’s innovative technologies will further enhance the value we create for customers across a wide range of industries. We look forward to welcoming the highly skilled and dedicated Flexim employees to Emerson and continuing to play a key role in driving business success.”
— Ram Krishnan
Chief Operating Officer, Emerson
“We are proud to join Emerson, where each other’s cultures place a strong value on innovation and focus on technology and R&D, and this transaction will enable Flexim to leverage Emerson’s global leadership in smart devices and superior business performance to offer a more comprehensive solution to a wider range of customers.” “In partnering with Emerson, we will continue to serve our customers and leverage our combined capabilities to address critical measurement needs.”
——Jens Helpert
CEO and Co-founder of Flexim
The transaction is expected to close by the end of Emerson’s fiscal year 2023, subject to customary closing conditions. Flexim is expected to add to Emerson’s sales growth, gross margin and adjusted earnings before income taxes. Terms of the deal were not disclosed. Flexim will be reported in Emerson’s Measurement and Analytics business.
Evercore acted as financial advisor to the transaction and Freshfields Bruckhaus Deringer LLP acted as legal advisor.
Emerson reaches agreement to acquire Afag
Accelerate the upgrading of factory automation capabilities
The acquisition will add $9 billion to Emerson’s factory automation services market and expand its reach in key growth markets in discrete and hybrid segments.
On August 17, Emerson announced that it has entered into a definitive agreement to acquire Afag Holding AG (” Afag “), an innovator in electric linear transmission, feeding and handling automation solutions.
Headquartered in Zell, Switzerland, Afag brings industry-leading technology and innovation to Emerson. The transaction will strengthen Emerson’s capabilities in factory automation, one of Emerson’s four priority areas, and create a leading portfolio of motion that combines Afag’s electric linear transport solutions with Emerson’s pneumatic motion technology. Afag serves customers in attractive and growing end sectors including battery production, automotive, packaging, medical, life sciences and electronics. The electric linear transmission business will increase the size of the market Emerson serves by more than $9 billion and is expected to grow at a mid-single digit rate annually, contributing to long-term profitable organic growth for Emerson.
“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 offers customers the advantage of improved energy efficiency and performance gains. We look forward to combining Afag’s transmission capabilities with our existing pneumatic leadership to create differentiated solutions for our customers.” Afag and its employees will play an important role in enhancing Emerson’s strength and innovation in plant automation.”
— Ram Krishnan
Chief Operating Officer, Emerson
“We are honored to join Emerson and build on their existing position in factory automation to further expand our global reach.” Our customers rely on Afag to provide critical custom systems, and we are taking advantage of this opportunity to energize and create more comprehensive, integrated solutions for our customers’ transport needs. We share Emerson’s vision of providing complete solutions for critical industries, and we look forward to continuing to drive long-term success as part of Emerson.”
——Adrian Fuchser
CEO, Afag
The transaction is expected to close by the end of Emerson’s fiscal 2023, subject to customary closing conditions, including regulatory approvals. Terms of the deal were not disclosed. Afag will be reported in Emerson’s Discrete Automation business.
Bryan Cave Leighton Paisner LLP served as legal counsel to Emerson in connection with the transaction.
