Rockwell Automation Board Declines Emerson’s Latest Offer Valued at $27 Billion

The board of directors at Rockwell Automation, Milwaukee, said it recently rejected a pair of unsolicited proposals from Emerson Electric, St. Louis, to acquire Rockwell Automation for more than $27 billion. As the largest remaining pure-play manufacturer in industrial automation, Rockwell Automation and its Allen-Bradley brand have long been seen as a prime acquisition target for conglomerates seeking a platform for growth in the industrial market.

The most recent proposal, which the board received on October 10, offered $107.50 per Rockwell Automation share in cash and 225 million shares of Emerson common stock, valued at $107.50 per share, which comes to $215 per share. The earlier proposal, dated August 2, offered $200 per share, with approximately half of the consideration in cash and half in Emerson common stock.

In a release, Rockwell’s board said it carefully reviewed the proposals and unanimously determined that each of Emerson’s proposals was not in the best interest of Rockwell Automation or its shareowners.

“The Rockwell Automation board of directors and management team are committed to serving the best interests of the company and Rockwell Automation shareowners, and are confident in the company’s strategic direction and our ability to continue delivering superior levels of growth and value creation,” said Blake Moret, Rockwell’s president and chief executive officer.

Emerson also issued a release simply confirming that it made a private offer to Rockwell Automation proposing a combination of the two companies. “The proposal was rejected by Rockwell Automation and no discussions are currently ongoing between the two companies,” the release said.