Blackstone/Emerson: vendor fills financing void left by banks
Private equity deals are not quite dead. But vendor companies may just have to wait to get all their cash.
Blackstone is acquiring a majority stake in Emerson’s air conditioning components business at an enterprise valuation of $14bn. Perhaps surprisingly, the biggest private capital firm in the world is starting with a restrained 55 per cent stake.
Blackstone is investing $2.4bn for common equity of the business along with $2bn in the form of convertible preferred stock. It is also raising third-party debt of $5.5bn from banks and the private debt funds of Sixth Street and Goldman Sachs, among others.
This story originally appeared on: Financial Times - Author:Tax Cognition
