Emerson recently announced a definitive agreement to acquire Afag Holding AG, an innovative leader in electric linear motion, feeding, and handling automation solutions. Based in Zell, Switzerland, Afag will bring state-of-the-art technology and innovation to Emerson.
This deal will enhance Emerson’s capabilities in factory automation, one of the company’s four priority adjacencies, and create a leading motion portfolio combining Afag’s electric linear motion solutions with Emerson’s pneumatic motion technology. And Afag serves customers in attractive, growing end segments including battery manufacturing, automotive, packaging, medical, life sciences, and electronics. The electric linear motion segment will expand Emerson’s served market by more than $9 billion and it is expected to grow mid-single digits annually, supporting Emerson’s long-term, profitable organic growth.
The deal is expected to close by the end of Emerson’s fiscal 2023, subject to customary closing conditions, including receipt of regulatory approvals. The terms of the transaction were not disclosed. And Afag will be reported in Emerson’s Discrete Automation segment.
KEY QUOTES:
“Afag brings exciting technology that will enable Emerson to accelerate growth in our existing $900 million factory automation business. As discrete and hybrid customers continue to accelerate electrification across their manufacturing processes, Afag’s technology is ideally suited to provide improved energy efficiency and performance gains. We look forward to combining Afag’s motion capabilities with our existing pneumatic leadership, creating a unique and differentiated solution for our customers. Afag and its employees will play an important role in enhancing Emerson’s strength and innovation in factory automation.”
— Ram Krishnan, chief operating officer of Emerson
“We are excited to join Emerson and build on its existing factory automation leadership, while further expanding our global reach. Our customers rely on Afag for essential, customized systems and we are energized by this opportunity to create a more comprehensive and holistic solution for their motion needs. We share Emerson’s vision of providing complete solutions in essential industries and we look forward to driving continued success as part of Emerson.”
— Adrian Fuchser, chief executive officer of Afag
