GLENVIEW, Ill.—Illinois Tool Works Inc. (ITW) is selling its packaging division to The Carlyle Group for US$3.2-billion and plans to use the money to buy back shares.
Carlyle says the packaging division has 88 manufacturing sites on six continents.
Carlyle said in the announcement it will run the packaging group as a standalone company.
ITW says it will use the money from the sale to buy back 50 million of its shares, which will offset the profit impact of losing the division.
Based in Glenview, Ill., ITW had announced a year ago that it was reviewing options for the business, which had 2012 revenue of US$2.4-billion, compared to $14.79-billion for the whole company.
ITW didn’t break out the division’s 2013 revenue in its earnings report last week.