The Carlyle Group has agreed to acquire the Industrial Packaging Group of Illinois Tool Works for $3.2 billion. The transaction is expected to close in the middle of 2014.
The Industrial Packaging Group (IPG) is a global manufacturer of strap, stretch, and protective packaging consumables, tools and equipment. IPG has 88 manufacturing locations on six continents and serves 45 countries. IPG is headquartered near Chicago in Glenview, IL (www.itwpackagingsolutions.com).
“IPG is a highly diversified business with strong management, attractive market positions and excellent free cash flow. 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,” said Brian Bernasek, Managing Director of The Carlyle Group.
Equity for the transaction will come from Carlyle Partners VI, a $13 billion fund which closed above target in November 2013. The Carlyle Group has secured committed debt financing from J.P. Morgan, Goldman Sachs, Bank of America Merrill Lynch, Barclays, Citigroup and Credit Suisse.
The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America. The firm employs 1,450 people in 34 offices across six continents and is based in Washington, DC (www.carlyle.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 2-7-14