Emerson on Thursday announced a deal to acquire Afag Holding AG, a company focused in electric linear motion, feeding and handling automation solutions.
Headquartered in Zell, Switzerland, Afag will enhance Emerson's capabilities in factory automation and create a motion portfolio that combines Afag's electric linear motion solutions with Emerson's pneumatic motion technology.
Afag serves customers in the battery manufacturing, automotive, packaging, medical, life sciences and electronics markets. The electric linear motion segment expands Emerson's served market by more than $9 billion and is expected to grow mid-single digits annually.
"Afag brings exciting technology that will enable Emerson to accelerate growth in our existing $900 million factory automation business," said Ram Krishnan, chief operating officer of Emerson. "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."
The transaction is expected to close by the end of Emerson's fiscal 2023, subject to customary closing conditions, including receipt of regulatory approvals. Terms of the transaction were not disclosed. Afag will be reported in Emerson's Discrete Automation segment.