At least six private equity groups are competing to buy the industrial packaging segment of Illinois Tool Works in a deal that could fetch more than $3 billion, according to a report today from Reuters.com.
The six companies include the Carlyle Group, LP, Blackstone Group LP, Apollo Global Management LLC, Bain Capital LLC, Ares Management LLC, and a consortium of Onex Corp. and the Canada Pension Plan Investment Board (CPPIB). They are among the firms that advanced to the second round of bidding, according to Reuters, which quoted people familiar with the matter.
Illinois Tool Works announced in September it was initiating a process to sell the industrial packaging unit, as the conglomerate continues to streamline its diversified business lines.
The packaging business, which had revenue of about $2.4 billion in 2012, makes steel plastic and paper products used for bundling, shipping and protecting transported goods, with brands including Signode, Strapex, Angleboard and Mima.