Global alternative asset manager The Carlyle Group (NASDAQ: CG) has agreed to acquire the Industrial Packaging Group (IPG) from Illinois Tool Works (NYSE: ITW) for $3.2 billion. IPG is a global manufacturer of strap, stretch, and protective packaging consumables, tools and equipment. The transaction is subject to customary regulatory approvals and is expected to close in the middle of 2014.
Brian Bernasek, Managing Director of The Carlyle Group, said, “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.”
Headquartered in Glenview, IL, IPG has 88 manufacturing locations on six continents and serves 45 countries. The Company has a well-established track record in its markets, highlighted by a hundred-year history of innovation at Signode, one of IPG’s primary strap packaging brands.
Equity for the transaction will come from Carlyle Partners VI, a $13 billion U.S. Buyout fund.Since inception, Carlyle has invested more than $9 billion of equity in industrial transactions around the globe. Current and former investments include Accudyne Industries (formerly Hamilton Sundstrand Industrial), Axalta Coating Systems (formerly DuPont Performance Coatings), Allison Transmission (NYSE: ALSN), AxleTech International, and Rexnord Corporation (NYSE: RXN). The Carlyle Group has secured committed debt financing from J.P. Morgan, Goldman Sachs, Bank of America Merrill Lynch, Barclays, Citigroup and Credit Suisse. Kirkland & Ellis is legal advisor to The Carlyle Group. About The Carlyle Group The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $185 billion of assets under management across 122 funds and 81 fund of funds vehicles as of September 30, 2013. Carlyle's purpose is to invest wisely on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,450 people in 34 offices across six continents.