S&P puts Artesyn on positive watch

S&P said it placed the CCC long-term issuer credit and issue-level ratings on Artesyn Embedded Technologies Inc. on CreditWatch with positive implications.

Artesyn Embedded has agreed to sell its embedded power business to Advanced Energy Industries Inc. for $400 million.

Artesyn will use the proceeds to reduce debt, which will support significant credit metrics improvement.

The deal will consist of about $364 million cash and assumption of about $36 million in liabilities, the agency said.

The agency said it plans to resolve the CreditWatch within 90 days, once the transaction closes and S&P has visibility on Artesyn's plans for its capital structure and the remainder of the business.

The sale agreement does not include the embedded computing and consumer businesses, which will maintain current ownership structure as joint ventures between Platinum Equity, LLC and Emerson Electric Co., the agency said.

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