GLENVIEW, Ill. – Illinois Tool Works Inc. (ITW) has announced that its board of directors has authorized a plan to commence a sale process for its Industrial Packaging segment. The company announced in February that it was reviewing strategic alternatives for the segment, which had revenues of approximately $2.4 billion in 2012.
ITW said that it plans to reclassify the Industrial Packaging segment’s businesses to discontinued operations in the third quarter of 2013. The company expects the sale process to conclude by mid-2014.
"After carefully considering the underlying value of the business, the level of preliminary interest from potential buyers and a favorable debt market, the company and our board of directors have opted to initiate a sale process for the Industrial Packaging segment," said E. Scott Santi, president and CEO. "With this move, we are taking a sizeable step in the implementation of our strategy to narrow the focus of our portfolio."
To assist the company in the sale process, ITW has retained J.P. Morgan Securities LLC and Goldman, Sachs & Co. as its financial advisers.
The Industrial Packaging segment is a worldwide leader in the design and manufacturing of strap, stretch and protective consumables, tools and equipment. Its products are used to bundle, ship and protect goods during manufacturing, transport and warehousing. The segment includes an array of well-known brands such as Signode, Strapex, Orgapack, Angleboard and Mima among others.
