(Reuters) -Engineering solutions firm Emerson said on Thursday it had agreed to sell its remaining interest in its Copeland joint venture to Blackstone in a deal valued at about $3.5 billion.

Private equity funds managed by Blackstone would purchase Emerson's 40% equity ownership in the joint venture, Emerson said, adding that the deal was a "key step to simplify our portfolio" and enhance focus on automation.

"We believe now is the right time to execute our plans to fully exit the Copeland business. This agreement with Blackstone provides certainty and portfolio simplification to Emerson shareholders," CEO Lal Karsanbhai said.

The transactions are expected to close in the second half of 2024, Emerson said, adding it would use the $2.9 billion after-tax cash proceeds from the deal to pay down its existing debt obligations.

(Reporting by Deborah Sophia in Bengaluru; Editing by Anil D'Silva and Alan Barona)