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Illinois Tool Works explores sale of its industrial packaging unit

Updated: February 20, 2013 2:51PM

Glenview-based Illinois Tool Works may sell its industrial packaging business.

The company said Tuesday it is initiating a review process to explore strategic alternatives for the segment, which had 2012 revenues of approximately $2.4 billion. The business designs and manufactures steel, plastic, and paper products used for bundling, shipping, and protecting transported goods.

“As part of the execution of ITW’s enterprise strategy and portfolio management initiative, we are starting a process to explore strategic options for our Industrial Packaging segment, which may include a sale or spin-off of the business,” E. Scott Santi, president and chief executive officer, said in a statement. “We expect the review process will last through the remainder of 2013.”

ITW, a diversified industrial manufacturer, said it has retained J.P. Morgan Securities LLC and Goldman, Sachs & Co. as its financial advisers.

ITW had 2012 operating revenue of $17.9 billion and net income of $2.9 billion.

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