Emerson Acquires Knurr AG of Germany

January 31, 2006 by Jeff Shepard

Emerson has announced it has acquired Knurr AG, whose leading enclosure systems for the telecommunication and data industries — along with its cooling technologies — will become part of Emerson Network Power's broad technology offering.

Emerson will pay approximately EUR 80 million (including all debts assumed) for Knurr.

Knurr joins with Emerson Network Power's industry-leading Liebert® brand and its recent Cooligy acquisition to build comprehensive capabilities in rack solutions, mission-critical cooling, and systems integration for data center and telecom sites.

Emerson is taking proven technologies from room-level applications and integrating them into the rack, company officials said. Knurr's broad platform of rack systems will integrate Emerson's cooling and power management technologies, helping customers solve problems in new and existing installations and giving data center managers more flexibility in facility design, they said.

"The rack is fast becoming a critical product on the data center floor, serving as a platform for integrating power, cooling, and information technologies," said David N. Farr, Emerson chairman, chief executive officer and president. "The addition of Knurr's market-leading products and technologies supports our strategy to make the Liebert Adaptive Architecture&trade the desired standard for IT facilities."

Knurr also designs flexible, cost-effective enclosure platforms for the telecom industry, and is serving major telecom customers with innovative liquid rack-cooling systems and Advanced TCA(a)-compliant, extreme-density cabinets. These cabinets contain sophisticated power and cooling technologies, making it possible to deploy the next generation of wireless telecom technologies.

Advanced TCA(a) is a new series of industry standard specifications for next generation carrier grade communications equipment.

Emerson Network Power is the largest supplier of power for remote telecom equipment. The cabinet-level solutions acquired with Marconi's power business will be further bolstered by adding Knurr's enclosure capabilities, Emerson officials said. Together they make Emerson's DC Power solutions even more competitive as carriers continue to invest in next-generation wireless technologies and deploy broadband networks, they said.

Knurr, with sales in 2005 of approximately EUR 128 million, has manufacturing facilities in a number of countries in Europe, as well as in the United States and South America, and has a sales and marketing presence in 35 countries.