Emerson, a global leader in automation solutions, has announced the acquisition of Afag Holding AG, an innovative company specializing in electric linear motion, feeding, and handling automation solutions. This strategic move enables Emerson to tap into the expanding electric linear motion segment, which is projected to grow at a mid-single-digit rate annually. By integrating Afag’s cutting-edge technology with their existing pneumatic motion capabilities, Emerson aims to bolster its factory automation portfolio.
Market Expansion and Growth Potential
With its acquisition of Afag, Emerson significantly expands its served market by over $9 billion. The electric linear motion segment offers tremendous growth potential, positioning Emerson for long-term, profitable organic growth. This acquisition aligns with Emerson’s commitment to continually invest in innovative technologies that fuel its expansion into new markets and enhance customer value.
Synergies and Enhanced Capabilities
Afag’s expertise in electric linear motion solutions complements and strengthens Emerson’s factory automation capabilities. By combining Afag’s technologies with Emerson’s pneumatic motion offerings, a leading motion portfolio is created that offers customers a comprehensive range of solutions. This synergy enables Emerson to better serve diverse industries, including battery manufacturing, automotive, packaging, medical, life sciences, and electronics, where Afag already has an established presence.
Target Markets and Customers
Afag’s established customer base in various industries illustrates the trust and value that their automation solutions bring. By expanding into these markets, Emerson gains access to new customers and opportunities. Afag’s solutions have proven effective in supporting the specific requirements of battery manufacturing, automotive assembly lines, packaging processes, medical device production, life sciences research, and electronics manufacturing.
Accelerating Growth in Factory Automation
Emerson recognizes that Afag’s technology holds immense potential for accelerating growth in their existing $900 million factory automation business. As the trend towards electrification accelerates in discrete and hybrid manufacturing processes, Afag’s electric linear motion solutions offer improved energy efficiency and performance gains. With this technology, Emerson can help customers optimize productivity, reduce energy consumption, and achieve superior performance.
Integration Plan and Timeline
Emerson aims to fully integrate Afag’s electric linear motion portfolio into its Automation Solutions business unit by the end of the fiscal year 2023. This integration process will bring together the expertise and capabilities of both companies, enabling Emerson to offer a streamlined and comprehensive automation solution to its customers.
Commitment to Sustainability and Energy Efficiency
The acquisition of Afag reinforces Emerson’s commitment to investing in technologies that help customers meet their sustainability goals and drive energy efficiency. Afag’s electric linear motion solutions align perfectly with the industry’s increasing focus on reducing environmental impact while optimizing production processes. By harnessing Afag’s technology, Emerson can empower its customers to achieve their sustainability objectives and improve energy efficiency.
Earnings Perspectiv
Emerson expects the acquisition of Afag to be accretive to earnings per share within the first year post-close. This reflects the financial benefits and growth potential that Afag’s innovative automation solutions bring to Emerson’s existing business. The acquisition not only expands Emerson’s served market but also positions the company for increased profitability.
Customer Benefits and Comprehensive Solutions
The combination of Emerson and Afag offers customers a comprehensive range of automation solutions to optimize productivity and achieve superior performance. By leveraging Afag’s electric linear motion technology, customers can reduce energy consumption and maximize efficiency across their manufacturing processes. The integration of Afag’s expertise with Emerson’s established capabilities ensures that customers receive tailored solutions designed to address their specific needs.
Emerson’s acquisition of Afag Holding AG marks a significant milestone in the company’s expansion into the electric linear motion segment. The synergies created through the integration of Afag’s technology with Emerson’s existing pneumatic motion offerings position the company for substantial growth. As the trend towards electrification gains momentum, Afag’s electric linear motion solutions hold invaluable potential for improving energy efficiency and performance. With this acquisition, Emerson reaffirms its commitment to investing in technologies that help customers achieve their sustainability goals while driving continuous improvement in automation solutions.