Technology and engineering company Emerson Electric Co. (EMR) announced that it has agreed to sell its Daniel Measurement and Control Business to Turnspire Capital Partners, an investment company. The terms of the deal have not been disclosed so far.
Following the news, shares of the company rose 1% to close at $98.61 in Monday’s trading session.
The transaction includes all of Daniel’s brand rights, facilities, intellectual property and personnel. The deal, which is likely to close in Emerson’s Fiscal Year 2021, will not include Daniel’s ultrasonic flowmeter and fiscal transfer system businesses.
The sale denotes a strategic move by Emerson to focus its resources on software-enabled technologies with rich data in diversified and high-growth end markets. (See Emerson stock chart on TipRanks)
A Partner at Turnspire, Abel S. Osorio, said, “Turnspire is excited to establish Daniel as an independent flow measurement and control company built on the foundation of its iconic brand, unparalleled reputation for reliability, superior technology and global installed base. We are committed to supporting the Company as it pursues its attractive organic growth opportunities and strong pipeline of strategic acquisition opportunities. We look forward to partnering with the Daniel team to further solidify the business’ market leadership and invest in research and development, technology and new products.”
On July 12, Wolfe Research analyst Nigel Coe reiterated a Hold rating on the stock. The analyst, however, raised the price target from $107 to $113 (14.6% upside potential from current levels).
The stock has a Moderate Buy consensus rating based on 8 Buys and 6 Holds. The average Emerson price target of $104.85 implies 6.3% upside potential from current levels. Shares have gained 62.1% over the past year.