ITW plans sell off

Illinois Tool Works Inc. (ITW), a multinational manufacturer of a diversified range of value-added industrial products and equipment, today announced a decision to divest its decorative surfaces segment including Wilsonart, and the industrial software business Click Commerce.  ┬á In 2007, the decorative surfaces segment had revenues of $1.2 billion and operating margins of 13 percent. ┬á Wilsonart manufactures and distributes custom construction products for commercial, residential and renovation applications, including decorative laminate, solid surface, flooring, decorative materials, adhesives and custom edges. ┬á┬á Acquired by ITW in 1999, the group now has 16 business units worldwide with the majority of revenues based in North America. ┬á┬á "The Decorative Surfaces group has a variety of premium brands and is a very valuable asset. As a result, we have received a number of inquiries about the laminate businesses from potential buyers over the years," said David B. Speer, chairman and chief executive officer. "We believe the proposed sale of these businesses would provide a new owner the opportunity to fully leverage the depth and breadth of the decorative surfacing products and technologies as well as their unique design and full-service capabilities."┬á┬á With 2007 revenues of $67 million, Click Commerce supplies software solutions and consulting services, including supply chain and parts optimization, clinical research, and contingent labor management. It was acquired by ITW in October of 2006.┬á┬á "Click Commerce is another valuable asset that has proven to have a different business model than the typical, industrial-based ITW operation," said Speer. "While we have made significant improvements in the Click Commerce business over the past 18 months, given the valuations for potential acquisitions in this area we believe it would be difficult to grow and achieve sufficient business scale in this software space."┬á┬á ITW said that it plans to reclassify these businesses to discontinued operations in the third quarter of 2008. With $16.2 billion in revenues, ITW consists of over 800 business units in 52 countries.  ┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á