ITW to sell industrial packaging unit
Illinois Tool Works Inc. plans to sell its Industrial Packaging Group to The Carlyle Group for $3.2 billion.
The transaction is subject to regulatory approval and customary closing conditions and is expected to close by mid-year.
IPG is a global manufacturer of strap, stretch, and protective packaging consumables, tools and equipment. Headquartered in Glenview, Ill., IPG has 88 manufacturing locations on six continents and serves 45 countries. IPG brands include Signode, one of IPG’s primary strap packaging brands.
"We are pleased to announce the sale of the Industrial Packaging segment as this represents the last major step in refocusing our portfolio in conjunction with our Enterprise Strategy," said Scott Santi, ITW president and chief executive officer. "The Industrial Packaging business is an industry leader with a strong management team and highly dedicated people. We thank them all for their many contributions to ITW and know they will continue to thrive as an investment of The Carlyle Group."
As previously announced, proceeds from the sale will be used to partially fund the company's plan to repurchase approximately 50 million shares by the end of 2014 in order to offset the EPS dilution associated with this divestiture. As of the end of 2013, the company had repurchased approximately 14 million shares in conjunction with this plan.
"The Industrial Packaging business is a highly diversified, market leader," said Brian Bernasek, Carlyle managing director. "We are proud to partner with its strong management team and committed employees and look forward to supporting the company's growth initiatives."
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
