You 've seen the Copeland name often, in connection with its HVACR compressor product offerings. Now, one of the most recognized names in HVACR has been adopted as the official name of the entire Emerson Climate Technologies business.
In news received May 31, 2023 Blackstone -- reportedly the world's largest alternative asset manager-- and Emerson announced that private equity funds managed by Blackstone have completed the previously announced acquisition of a majority stake in Emerson’s Climate Technologies business, in a transaction valuing the business at $14 billion.
The new standalone business will be named Copeland, in recognition of that brand’s 100-year legacy, global recognition and influence across the HVACR industry. As a standalone company focused on serving the global HVACR market, Copeland’s product portfolio includes often specified compressors, controls, thermostats, valves, software and monitoring solutions for residential, commercial and industrial customers. Copeland had fiscal 2022 net sales of $5 billion.
Copeland celebrated its 100th anniversary in 2021.
“Copeland has long been a pioneer in the HVAC and refrigeration industries with unmatched capabilities in engineering, design and innovation,” said Ross B. Shuster, chief executive officer of Copeland. “With the focus that comes from being a standalone company, and the support of our shareholders, Blackstone and Emerson, we plan to extend the company’s leadership position in the industry and develop new and integrated climate technology solutions. The Copeland business is made up of over 18,000 talented team members, who are aligned and committed to developing technologies and solutions that drive decarbonization at scale, accelerate the global trend of electrification and deliver greater value for our customers and end users.”
As a major HVACR industry manufacturer, Copeland is in the middle of myriad changes related to industry changes related to electrification, as well as the EPA's mandated phasedown of HFC refrigerants. Demand for any product that is forced by legislation is always a blessing, and sources report the HVACR market is seeing significant demand for Copeland's offerings and those in the refrigerant sector.
“Copeland has grown into the market leader in supplying critical components for residential, commercial and industrial climate control solutions, and we are thrilled to support its next phase of growth as a world-class standalone company,” said Joe Baratta, global head of Blackstone Private Equity. “Leveraging Blackstone’s long track-record of successful large-scale corporate partnerships, we look forward to working with the Copeland and Emerson teams to accelerate the company’s profitable, long-term growth. We’re confident in the runway ahead to advance Copeland’s industry leading position by delivering even more innovative, energy-efficient solutions to support its customers’ carbon reduction efforts.”
“We are pleased to complete this significant transaction, an important milestone in Emerson’s portfolio transformation into a cohesive global automation leader,” said Lal Karsanbhai, president and chief executive officer of Emerson. “The upfront proceeds from this transaction allow Emerson to advance our portfolio in attractive, higher-growth automation markets, while our remaining non-controlling investment enables Emerson to benefit from Copeland’s future upside under Blackstone’s ownership, until we exit the business. With our focused portfolio, we are bringing comprehensive automation products, software and solutions to a diverse set of end markets, driving operational excellence and enhancing value creation for Emerson shareholders.”
Copeland will continue to operate from St. Louis, while maintaining a global footprint to serve customers in Europe, Latin America, Asia, Middle East and Africa.