Illinois Tool Works Inc. (ITW) said it is reviewing strategic options for its industrial-packaging segment--including a potential sale or spinoff of the business--as part of the industrial conglomerate's restructuring efforts.
The business makes and designs steel, plastic and paper products used for bundling, shipping and protecting transported goods, with brands including Signode, Strapex, Angleboard and Mima. The segment reported 2012 revenue of about $2.4 billion.
The review is expected to last through 2013.
ITW operates several hundred businesses in industrial sectors that include automotive components, welding equipment, testing and measurement devices, industrial packaging and commercial kitchen appliances.
The company last year said it plans to consolidate hundreds of smaller business units into larger-scale businesses that the company expects will be more competitive in global markets and produce higher profits. The consolidation is expected to eliminate hundreds of managers and reduce expenses for materials and services, while also helping the company focus on its faster-growing businesses.
ITW last month said its fourth-quarter earnings surged on a gain related to the sale of its laminates unit.
Shares rose 2.1% premarket to $64.60. As of Friday's close, the stock was up 6.2% over the past three months.
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