Hey guys, I've got a crazy one for you! I Just found an article on a recent buyout of one of the largest corporations in the HVAC industry. First of all, it's interesting and we're going to talk about maybe how this will affect you as the homeowner. Some of the things you might see in the future, but a lot of Industry analysts are comparing this to a few years ago we saw Honeywell kind of do a spin-off of a whole new brand and a whole new line of products that folks had never seen before which then gave birth to. You know, a lot of the products that we're using today. So of course that was residio. But this recent buyout is going to be of the company called Emerson and anybody that knows anything about the HVAC industry has either heard of Emerson or one of their brands. they're They're absolutely enormous as far as the amount of Brands and products that they offer. I would say a large percentage of the heating and air systems being sold today have some sort of Emerson controls in them. Uh, you know they're going to have control boards, gas valves, uh, other components similar to that being produced by Emerson and then installed in a lot of the you know brands that you've heard of. You know, a lot of the equipment that they're selling has Emerson products in there. We're talking about the Copeland compressor brand. We're talking about tons of different products when it comes to tools and things like that. Let me just take a minute to read off some of the brands that, you may have heard of. A lot of folks have heard of Ridgid A lot of folks have heard of Greenlee that's a more of an electrical I See them make a lot of electrician, tools and products. They of course make the Scentsy thermostats, the white Rogers line of heating and air stuff, the garbage disposal brand InSinkErator If you go in a lot of hardware stores or home improvement stores, you're gonna see that I could just keep going. This is the tip of the iceberg. So they just make so much stuff. And again, if you haven't heard of some of these products, chances are you even have one of these products in your home and you don't even realize that you have an Emerson owned brand or product in your home. And so recently, Emerson on October 31st announced plans to sell a majority stake in its Climate Technologies business the entire HVAC r related portfolio of services and products including the Copeland's compressor brand to the private. Equity Firm Blackstone The deal to be finalized in the coming months will spin off the Climate Technologies as a joint venture with Emerson to have a non-controlling 45 stake in the new company until possible sale or initial public offering. So you've got this company Blackstone that's going to be the initial investor. There's also a few other folks that are partaking in this. The agreement values Emerson's Climate Technologies business at 14 billion with a B billion dollars and we'll have Emerson a pre-tax payment up front of 9.5 billion dollars. A subsidiary of Abu Dhabi investment Authority and the investment firm GIC which is tied to the government of Singapore are investing alongside. Blackstone. This is a pretty huge investment and I when I first heard about this, I was like you know, is this going to be one of those deals where you're going to see a lot of things get slashed, the quality of products go down. You know, one of those deals where an investment firm comes in and puts their thumb print on it and then resells it to make more money or whatever. And so this article goes on to read: for Brian Loftus A Market Research and benchmarking analysts at the Contractors Group Hardy The deal is an endorsement of HVAC R During a major shift in the infrastructure that supports it, quote, Blackstone's investment in Climate Technology is confirmation that the electrification growth story is real. Blackstone is not a slash and dash investor. They see the Strategic value and potential of climate technology as does Emerson Loftus Said: the whole industry is going to evolve as the infrastructure changes. Emerson's going to continue to own a big chunk of it. So obviously Emerson's still involved here. You know the folks at Emerson and you know all the things that they've created and so on. they're still going to be there. And so as I said earlier in the video, you know this is one of those deals where they are saying we're going to see more things coming out when you know we saw Honeywell come out with residio and some of the products that they've now offered and with that whole Residio line, they're kind of focusing on the consumer, the residential Market if you will and so they are comparing this to that that you're going to see products coming out from Emerson I would argue that despite their footprint and all the things that they've created, that a lot of homeowners on the front lines probably don't recognize them or their brands as much when it comes to say thermos stats as much as they do Brands like Honeywell or Nest or some of these other brands that you've heard of. Now you know they do have their new Cincy 2 thermostat coming out. Maybe that's just the beginning of all this, but it's obvious that with all the changes coming, with all the price hikes that we've talked about in some other videos and all the new changes coming as far as efficiency standards and so on that a lot of investing is being put into the HVAC industry a lot of folks are seeing. You know all these changes as a as far as profit goes, A way for them to get into that in a press release: Emerson President and CEO uh I'm not going to try to say his name, it says he took over in early 2021 said the spin-off will give Emerson cash to invest in growth and the opportunity to focus on its automation business while also staying invested in the market potential of Climate Technologies Our differentiated capabilities and intelligent devices and software and the focus, cohesiveness and operating agility of a pure play company will allow Emerson to bring our comprehensive automation products and solutions to a diverse set of end markets. He said so yeah I mean right there I think he's in a fancy way saying look, we already know where this money is going to go and we are focused on creating software or devices and we're looking at this in-consumer market so that's essentially what he's saying there. So ultimately, if you're a homeowner and you've caught this video, what does this mean for you I think it's good. As far as you know, your options are going to expand even more I think that they're going to be coming out with newer Technologies And just like all these other companies, when they're coming out with new things and trying to improve, make products better and Technologies and so on, this can only be a good thing. For that, you know that you will have more options. It'll be interesting for me as someone that follows all this uh, what those options will be So let me know your thoughts. Please comment down below: Is there a particular product you would like to see? I have made some predictions on where the thermostat Market could go on the future on other videos talking about Bluetooth technology and things like that, doing away with wires in your walls and some of the things we see, but you know I'd be curious what you would like to see. You know if you have a product or something that you think would improve your overall interaction with your heating and air system or controlling it with, you know some of the things that Emerson does I'd be curious to hear that. Thanks for watching. Hit that subscribe button. we'll see you next time.