EMERSON ELECTRIC AND ROBERT BOSCH GmbH ANNOUNCE LETTER OF INTENT FOR POWER TOOL JOINT VENTURE
EMERSON ELECTRIC AND ROBERT BOSCH GmbH ANNOUNCE
LETTER OF INTENT FOR POWER TOOL JOINT VENTURE
ST. LOUIS, Nov. 12 /PRNewswire/ -- Emerson Electric Co. (NYSE: EMR) and Robert Bosch GmbH announced today that they have signed a letter of intent to establish a joint venture for the development, manufacture and distribution of power tools. Bosch and Emerson will have an equal interest in this joint venture.
The announcement was made today by Charles F. Knight, chairman and chief executive officer of Emerson, and Marcus Beirich, chairman and chief executive officer of Bosch.
The consummation of the joint venture is contingent upon negotiation of a definitive joint venture agreement and receipt of U.S. and German regulatory approvals.
The newly formed joint venture would combine Skil Corporation, an Emerson subsidiary, and Robert Bosch Power Tool Corporation, a U.S. subsidiary of Robert Bosch. Robert Bosch Power Tool Corporation manufactures portable electric power tools primarily for professional use in its New Bern, N.C., facility. Skil Corporation, based in Chicago, Ill., has its primary manufacturing facilities in Heber Springs, Ark.; Walnut Ridge, Ark., and Breda in the Netherlands, and manufactures portable electric power tools primarily for consumer use.
Since July 1990, Bosch and Emerson each have also held a 50 percent ownership in Vermont American Corporation. Although the companies expect to contribute these interests to the joint venture, Vermont American will continue to be managed separately. Vermont American, based in Louisville, Ky., is a diversified manufacturer and marketer of cutting tools, power tool accessories, hand tools, and lawn and garden products for consumer and industrial use.
Emerson Electric Co., based in St. Louis, Mo., manufactures a broad range of electronic, electrical and other products for consumer, commercial and industrial markets.
Robert Bosch GmbH, based in Stuttgart, Germany, manufactures electronic automotive equipment, communications technology equipment, consumer goods and capital goods.
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/CONTACT: William K. Anderson or James R. Orso, 314-982-1700, for Emerson Electric/
(EMR) CO: Emerson Electric Co.; Robert Bosch GmbH ST: Missouri IN: SU: JVN SH -- NY019R -- 3477 11/12/91 12:46 EST