ITW Completes Divestiture of a Majority Interest in Decorative Surfaces
Segment to Clayton, Dubilier & Rice
GLENVIEW, Ill., Oct. 31, 2012
GLENVIEW, Ill., Oct. 31, 2012 /PRNewswire/ --Illinois Tool Works Inc. (NYSE:
ITW) today announced it has closed on the agreement to divest a 51 percent
stake in its Decorative Surfaces segment, consisting of Wilsonart and related
international businesses, to a fund managed by Clayton, Dubilier & Rice, LLC
(CD&R). As announced in August of this year, ITW will receive cash proceeds
of approximately $1.05 billion and will retain a 49 percent equity interest in
the business. ITW intends to utilize a majority of after-tax transaction
proceeds to repurchase shares to help offset associated earnings dilution.
ITW's ownership interest in the decorative surfaces businesses will be
reported using the equity method of accounting. The current fourth quarter and
full-year 2012 forecast excludes the expected after-tax gain from the
transaction, any related transaction expenses and any ongoing P&L impact from
ITW's 49 percent equity interest in the new entity.
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including, without
limitation, statements regarding use of proceeds from the announced
transaction. These statements are subject to certain risks, uncertainties and
other factors which could cause actual results to differ materially from those
anticipated. Such factors include failure to obtain regulatory approvals or
to satisfy other conditions of the transaction, unanticipated expenses related
to the transaction, unexpected issues that may result from ITW's continued
ownership of a minority interest in the transaction, and other factors
contained in ITW's 2011 Form 10-K and Form 10-Q for the third quarter of 2012.
Celebrating its 100-year anniversary in 2012, ITW is a Fortune 150 global
diversified industrial manufacturer of value-added consumables and specialty
equipment with related service businesses. The Company focuses on profitable
growth and strong returns across worldwide platforms and businesses. The
businesses serve local customers and markets around the globe, with a
significant presence in developed as well as emerging markets. ITW's revenues
totaled $17.8 billion in 2011, with more than half of the revenues generated
outside of the United States.
SOURCE Illinois Tool Works Inc.
Contact: John Brooklier, +1-847-657-4104, email@example.com
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