NEW YORK (TheStreet) -- Emerson Electric (EMR) shares are up 1.3% to $59.20 in early market trading on Monday after the global diversified technology company agreed to sell its power transmission business to Regal Beloit (RBC) for $1.44 billion.
The deal brings to fruition the company's announcement in June that it was looking to sell the unit in order to focus on its higher revenue generating businesses.
The power transmission business, which makes couplings, bearings and gear components, generated $600 million in revenue in 2014 and employed over 3,000 people. Regal Beloit, which makes electric motors, paid $1.4 billion in cash for the unit with certain post-retirement liabilities making up the rest of the purchase price.
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TheStreet Ratings team rates EMERSON ELECTRIC CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EMERSON ELECTRIC CO (EMR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."