Specialized industrial equipment, consumables manufacturer Illinois Tool Works to pursue sale of its industrial packaging segment by mid-2014 in order to narrow focus of its portfolio
September 24, 2013
– US diversified industrial manufacturer Illinois Tool Works Inc (NYSE:ITW), or ITW, on Tuesday said its board had given the go-ahead to a sale of its industrial packaging segment in line with the plan to narrow the focus of the company's portfolio.
The decision is the result of a strategic review of the business, which ITW unveiled in February. It was made after consideration of the underlying value of the segment, the level of preliminary interest from potential suitors and a favorable debt market, CEO E Scott Santi said.
ITW said the sale, on which it is being advised by JP Morgan Securities LLC and Goldman Sachs & Co, is seen to complete by the middle of next year.
It plans to fully offset earnings per share dilution resulting from the offload through stock buybacks.
The particular business, which generated USD2.4bn (EUR1.8bn) of revenues last year, makes strap, stretch and protective consumables, tools and equipment, used to bundle, ship and protect goods during manufacturing, transport and warehousing.