Textron to sell its tool business to Ferguson-based Emerson
Emerson Electric will acquire the tools and equipment business of Textron, a Providence, Rhode Island-based defense and aerospace company, for $810 million.
The business makes products including electrical and utility tools, and test and measurement instruments. It recorded 2017 revenue of about $470 million.
“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,” said Emerson Chairman and CEO David Farr in a statement. “The strong strategic fit with Ridge Tool provides a meaningful value creation opportunity for Emerson.”
Ferguson-based Emerson will combine the unit with its Ridge Tool Company to create a $1 billion professional tools business.
The deal is expected to close in the next 90 days.