Illinois Tool Works considers sale or spinoff of industrial packaging business

By Jessica Holbrook

Published: February 19, 2013 1:03 pm ET
Updated: February 19, 2013 1:07 pm ET

Related to this story

Topics Industrial Packaging
Companies & Associations

GLENVIEW, ILL. -- Illinois Tool Works is considering a sale or spinoff of its industrial packaging unit, which includes the firm's Signode, Muller and Mima brands.

The unit makes plastic, steel and paper products and equipment for bundling, shipping and protecting transported items. It had sales of approximately $2.4 billion in 2012, a 2 percent drop from 2011.

The industrial packaging unit makes up 14 percent of total company sales.

ITW said the possible divestiture is part of their ongoing portfolio management initiative. The firm plans to divest commoditizing businesses -- up to 25 percent of ITW's portfolio -- that negatively impact the company's performance, according to a presentation at ITW's 2012 investor meeting.

ITW will instead focus on higher growth markets and a simplified business structure that includes consolidating the firm's approximately 800 businesses.

In 2012, ITW finalized a sale of its decorative surfaces segment to a fund managed by Clayton, Dublier & Rice LLC, and it also sold its Minigrip re-sealable bag business to Inteplast Group Ltd.

ITW, based in Glenview, Ill., had sales of approximately $18 billion in 2012. The manufacturing powerhouse has about 60,000 employees in 52 countries.


Comments

Illinois Tool Works considers sale or spinoff of industrial packaging business

By Jessica Holbrook

Published: February 19, 2013 1:03 pm ET
Updated: February 19, 2013 1:07 pm ET

Post Your Comments


Back to story

Market Reports

Trends in Resin Distribution

The growth of the North American resin distribution market is undeniable - and industry analysts are confident that growth will continue in 2015 and beyond.

This new report analyzes market trends and provides data on historical sales trends for PE (distribution and resellers), PolyOne Distribution figures, U.S. ethylene expansions based on shale gas and natural gas production by category to 2035.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events