Illinois Tool Works Sells Packaging Unit to Carlyle Group For $3bn

Illinois Tool Works

Illinois Tool Works Inc. (NYSE:ITW) announced in September it was initiating a process to sell its industrial packaging unit, as the conglomerate continues to streamline its diversified business lines.

Illinois Tool Works: Who are these people?

The Glenville, Illinois-based manufacturer was founded in 1912 and employs over 65,000 people across hundreds of business lines in nearly 60 countries. The company has been a Fortune 200 company for decades and has both an impeccable environmental record as well as a reputation for being nothing short of strange to interview with for those seeking employment. Job seekers are generally taken to lunch and given something not dissimilar to a citizenship test with applicants fielding questions like, “How many U.S. Senators are there?”

Quirkiness aside, the company will most likely sell to one of two suitors.The Carlyle Group LP (NASDAQ:CG) is the odds on favorite to empty their coffers of $3 billion though another private equity firm, Onex, jumped into the mix late in negotiations. Onex is working with the Canadian Pension Plan Investment Board to make it happen.

Carlyle to lose?

The Carlyle Group LP (NASDAQ:CG) is no stranger to taking bits from industrial conglomerates. Most recently they paid $4.15 billion for the diagnostics unit of Johnson & Johnson (NYSE:JNJ). In 2012, they paid just shy of $5 billion for E I Du Pont De Nemours And Co (NYSE:DD)’s performance coatings division.

Shares of Illinois Tool Works Inc. (NYSE:ITW) were largely unchanged today ahead of the anticipated announcement though were up a touch closing at $78.12, up $0.52.

Based on reporting by Reuters today the deal looks to be nearing completion with an announcement expected within hours.



About the Author

Brendan Byrne
While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. To contact Brendan or give him an exclusive, please contact him at theflask@gmail.com