Economy

Illinois Tool Works sells packaging unit for $3.2B

GLENVIEW, Ill. (AP) — Illinois Tool Works is selling its packaging division to The Carlyle Group for $3.2 billion and plans to use the money to buy back shares.

Carlyle says the packaging division has 88 manufacturing sites on six continents. Carlyle said in the announcement on Thursday that it will run the packaging group as a stand-alone company. ITW says it will use the money from the sale to buy back 50 million of its shares, which will offset the profit impact of losing the division.

Illinois Tool Works Inc., which is based in Glenview, Ill., had announced a year ago that it was reviewing options for the business, which had 2012 revenue of $2.4 billion, compared to $14.79 billion for the whole company. ITW didn't break out the division's 2013 revenue in its earnings report last week.

ITW's shares rose 83 cents to $78.95 in after-hours trading. They had risen 53 cents to close at $78.12 in regular trading before the announcement of the deal.

Related Headlines

  • Sears to spin off Lands' End business

    Sears Holdings Corp. said Friday that it will spin off its Lands' End clothing business as a separate company by distributing stock to the retailer's shareholders. It's the ... 

  • Dynegy gets pollution waiver for Ill. coal plants

    The Illinois Pollution Control Board agreed Thursday to give a Texas company extra time to install pollution controls at five Illinois coal-fired power plants, saying that ... 

  • CVS Caremark to buy Coram for $2.1 billion

    Drugstore chain operator CVS Caremark Corp. said Wednesday that it has agreed to buy the drug infusion business Coram LLC, a unit of Apria Healthcare Group Inc., for $2. 

  • GrubHub orders up an IPO

    Online delivery company GrubHub plans to raise up to $100 million through an initial public offering. The startup was founded in 2004, making its name catering to college ... 

Find the best rates

Find your future job here