Emerson has signed an agreement to acquire SPX Corporation's 44.5 percent minority interest in EGS Electrical Group, giving it 100 percent ownership of the business. Emerson and SPX have jointly held the business since 1997, with Emerson responsible for operational management and consolidation of results in its Industrial Automation segment. The business had annual revenues in 2013 of more than $500 million.
The transaction is expected to close within two months, subject to required regulatory approvals. EGS sales and earnings will continue to be consolidated in the Industrial Automation segment, while SPX's noncontrolling interest in earnings of EGS will cease. Emerson expects the transaction to be slightly accretive to earnings per share in 2014. The purchase price will be $571 million.