UPDATE: ITW to Sell its Industrial Packaging Segment to The Carlyle Group for $3.2B

Illinois Tool Works (NYSE: ITW) today announced that it has signed a definitive agreement to sell itsIndustrial Packaging Segment to The Carlyle Group (NASDAQ: CG) for $3.2billion. The transaction is subject to regulatory approval and customaryclosing conditions and is expected to close by mid-year. "We are pleased to announce the sale of the Industrial Packaging segment asthis represents the last major step in refocusing our portfolio inconjunction with our Enterprise Strategy," said Scott Santi, ITW presidentand chief executive officer. "The Industrial Packaging business is anindustry leader with a strong management team and highly dedicated people.We thank them all for their many contributions to ITW and know they willcontinue to thrive as an investment of The Carlyle Group." As previously announced, proceeds from the sale will be used to partiallyfund the company's plan to repurchase approximately 50 million shares by theend of 2014 in order to offset the EPS dilution associated with thisdivestiture. As of the end of 2013, the company had repurchasedapproximately 14 million shares in conjunction with this plan. "The Industrial Packaging business is a highly diversified, market leader,"said Brian Bernasek, Carlyle managing director. "We are proud to partnerwith its strong management team and committed employees and look forward tosupporting the company's growth initiatives." To assist the company in the sale process, ITW retained J.P. MorganSecurities LLC and Goldman, Sachs & Co. as its financial advisers and Latham& Watkins LLP as its legal counsel. This release contains forward-looking statements within the meaning of thePrivate Securities Litigation Reform Act of 1995, including, withoutlimitation, statements regarding the amount and timing of share repurchasesand timing of the disposition of the Industrial Packaging segment. Thesestatements are subject to certain risks, uncertainties and other factorsthat could cause actual results to differ materially from those anticipated.Important factors that could cause actual results to differ materially fromthe Company's expectations are set forth in ITW's Form 10-K for 2012 andForm 10-Q for the quarter ended September 30, 2013. ITW is a Fortune 200 global diversified industrial manufacturer of valueadded consumables and specialty equipment with related service businesses.The Company focuses on solid growth, improving profitability and strongreturns across its worldwide platforms and businesses. These businessesserve local customers and markets around the globe, with a significantpresence in developed as well as emerging markets. ITW's revenues totaled$14.1 billion in 2013.