Global Fastener News

ITW Plans $1b in Acquisitions in ’06

Jason Sandefur

MEDIA SPOTLIGHT
Editor’s Note: Articles in Media Spotlight are excerpts from publications or broadcasts that show the industry what the public is reading or hearing about fasteners and fastener companies.

Illinois Tool Works Inc. has enough deals in the works to its targeted range of acquisitions this year, according to Reuters.
“Our (deal) pipeline has over $1 billion in deals,” CEO David Speer stated.
In 2005 ITW completed 22 acquisitions, adding about $600 million in annualized revenue. In the first five months of 2006, the company has already inked 11 deals, adding more than $350 million in annual sales. Only three acquisitions last year included companies with sales greater than $100 million. This year only a couple of the more than 30 companies being acquired have sales in excess of $100 million, Speer noted.
Despite its history for acquiring smaller companies, Speer made clear that larger acquisitions are possible as well. “If a bigger opportunity comes along and we think we can create value for our shareholders, we’ll certainly act on it,” Speer claimed.
The deals currently under review are evenly split between companies in North America and overseas, Reuters reported. Speer said overseas sales in the next few years to grow to half of overall revenue, up from 40% today, with much of the growth coming China and India. By 2010 Asia-Pacific sales will soar to 25% of overall revenues from 10% now. ITW has four deals in China being process this year, Speer explained. Web: itw.com �2006 FastenerNews.com