Emerson to Acquire Tools and Test Equipment Business from Textron to Create Leading Portfolio for the Pro

Acquisition creates the broadest professional tools and technologies
portfolio serving the global mechanical, electrical and plumbing segments

ST. LOUIS–(BUSINESS WIRE)–Emerson (NYSE: EMR) today announced it has signed an agreement to
purchase the Tools and Test Equipment (Tools & Test) business of Textron
(NYSE: TXT) for $810 million. Tools & Test is a leading manufacturer of
electrical and utility tools, diagnostics, and test and measurement
instruments with strong global distribution and highly respected brands,
including Greenlee and Klauke. The acquisition, joined with Emerson’s
Ridge Tool Company, creates a global $1 billion professional tools
business with the broadest offering for mechanical, electrical and
plumbing contractors. Emerson expects the acquisition to be accretive to
earnings in fiscal 2019 and immediately accretive to cash flow.

“This acquisition significantly contributes to Emerson’s investment
strategy of adding complementary businesses that broaden our served
markets and add key capabilities to meet the evolving needs of our
customers and drive premium growth,” said Emerson Chairman and Chief
Executive Officer David N. Farr. “The strong strategic fit with Ridge
Tool provides a meaningful value creation opportunity for Emerson.”

Tools & Test’s longtime leadership in electrical joining paired with the
RIDGID portfolio of joining technologies for mechanical and plumbing
applications creates a leading position in a fast-growing segment,
critical for meeting the safety and efficiency needs of the professional
trades. In addition, Tools & Test brings offerings in diagnostics and
other digital technologies that are an excellent fit with RIDGID. From a
geographic perspective, Tools & Test’s strong presence in European
markets complements the market strength of RIDGID outside of Europe, and
furthers the company’s mission to be the global tool of choice for the
professional contractor.

“The Tools & Test acquisition provides Emerson an outstanding
opportunity to better serve our target customer – the pro,” said Robert
T. Sharp, Executive President, Emerson Commercial & Residential
Solutions. “The addition of Greenlee and Klauke complements our iconic
RIDGID brand, creates a leading technology portfolio, expands our
geographic presence and strengthens our position in the growing global
professional tools marketplace. I look forward to personally welcoming
the Tools & Test employees into Emerson.”

Headquartered in Rockford, Ill., Tools & Test has 2,300 employees with
11 manufacturing locations around the world and 2017 sales of $470
million.

The acquisition is expected to close within the next 90 days, subject to
various regulatory approvals and other customary closing conditions.

NOTE: A short slide presentation with additional information is available
here.

Investor Conference Call

Please join us for a brief investor conference call to review the
acquisition today at 9:00 a.m. ET, hosted by Robert Sharp and Mark
Bulanda, Senior Vice President of Planning and Development. Access to
the live webcast of the discussion will be available at http://www.emerson.com/financial
at the time of the call. A replay of the conference call will remain
available for approximately three months.

About Emerson

Emerson (NYSE: EMR), headquartered in St. Louis, Missouri (USA), is a
global technology and engineering company providing innovative solutions
for customers in industrial, commercial, and residential markets. Our
Emerson Automation Solutions business helps process, hybrid, and
discrete manufacturers maximize production, protect personnel and the
environment while optimizing their energy and operating costs. Our
Emerson Commercial & Residential Solutions business helps ensure human
comfort and health, protect food quality and safety, advance energy
efficiency, and create sustainable infrastructure. For more information
visit Emerson.com.

Forward-Looking and Cautionary Statements

Statements in this press release that are not strictly historical may be
“forward-looking” statements, which involve risks and uncertainties, and
Emerson undertakes no obligation to update any such statements to
reflect later developments. These risks and uncertainties include
economic and currency conditions, market demand, pricing, protection of
intellectual property, and competitive and technological factors, among
others, as set forth in Emerson’s most recent Annual Report on Form 10-K
and subsequent reports filed with the SEC.

Contacts

Investor Contact:
Emerson
Tim Reeves, 314-553-2197
or
Media
Contact:
For Emerson
Dave Baldridge, 314-982-7782