The Carlyle Group Agrees to Acquire Industrial Packaging Group from Illinois
Tool Works for $3.2 Billion
Carlyle’s Industrial Expertise and Global Network Will Foster Company’s Growth
WASHINGTON -- February 6, 2014
Global alternative asset manager The Carlyle Group (NASDAQ: CG) has agreed to
acquire the Industrial Packaging Group (IPG) from Illinois Tool Works (NYSE:
ITW) for $3.2 billion. IPG is a global manufacturer of strap, stretch, and
protective packaging consumables, tools and equipment. The transaction is
subject to customary regulatory approvals and is expected to close in the
middle of 2014.
Brian Bernasek, Managing Director of The Carlyle Group, said, “IPG is a highly
diversified business with strong management, attractive market positions and
excellent free cash flow. We will leverage Carlyle’s global network to support
the Company’s growth, and we look forward to helping IPG achieve its full
potential as it transitions to a standalone company.”
Headquartered in Glenview, IL, IPG has 88 manufacturing locations on six
continents and serves 45 countries. The Company has a well-established track
record in its markets, highlighted by a hundred-year history of innovation at
Signode, one of IPG’s primary strap packaging brands.
Equity for the transaction will come from Carlyle Partners VI, a $13 billion
U.S. Buyout fund.
Since inception, Carlyle has invested more than $9 billion of equity in
industrial transactions around the globe. Current and former investments
include Accudyne Industries (formerly Hamilton Sundstrand Industrial), Axalta
Coating Systems (formerly DuPont Performance Coatings), Allison Transmission
(NYSE: ALSN), AxleTech International, and Rexnord Corporation (NYSE: RXN).
The Carlyle Group has secured committed debt financing from J.P. Morgan,
Goldman Sachs, Bank of America Merrill Lynch, Barclays, Citigroup and Credit
Suisse. Kirkland & Ellis is legal advisor to The Carlyle Group.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $185
billion of assets under management across 122 funds and 81 fund of funds
vehicles as of September 30, 2013. Carlyle's purpose is to invest wisely on
behalf of its investors, many of whom are public pensions. Carlyle invests
across four segments – Corporate Private Equity, Real Assets, Global Market
Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle
East, North America and South America. Carlyle has expertise in various
industries, including: aerospace, defense & government services, consumer &
retail, energy, financial services, healthcare, industrial, technology &
business services, telecommunications & media and transportation. The Carlyle
Group employs more than 1,450 people in 34 offices across six continents.
The Carlyle Group
Elizabeth Gill, +1-202-729-5385
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