Global alternative asset management firm Carlyle has signed an agreement with Illinois Tool Works (ITW) for the $3.2bn purchase of the company’s industrial packaging group.
The diverse group of packaging companies is engaged in the manufacture of strap, stretch, and protective packaging consumables, tools and equipment.
According to ITW, the sale proceeds from the transaction will be used to partially fund a repurchasing scheme of around 50 million shares by the end of the year to compensate the EPS dilution associated with the divestiture.
ITW president and CEO Scott Santi said that the transaction represents the last key step in refocusing the company’s portfolio in conjunction with its enterprise strategy.
Carlyle managing director Brian Bernasek said: "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."
As of the end of 2013, ITW had repurchased around 14 million shares in conjunction with the plan. The company has retained JP Morgan and Goldman Sachs as its financial advisers, and Latham & Watkins as its legal counsel for the transaction.