Representative Tom Reed (R-New York) received the...
Industrial products, water and defense divisions will become individual companies
ITT Corp. announced that its board of directors unanimously approved a plan to separate the company’s businesses into three distinct, publicly traded companies. Under the plan, ITT would execute tax-free spin-offs to shareholders of its water-related businesses and its Defense & Information Solutions segment. Following completion of the transaction, ITT will continue to trade on the New York Stock Exchange as an industrial company that supplies highly engineered solutions in the aerospace, transportation, energy and industrial markets. Under the plan, ITT shareholders will own shares in all three corporations following the completion of the transaction.
ITT senior management and its board of directors believe that these three businesses are well positioned to create significant value for shareholders as standalone companies. ITT expects to finalize and execute the plan before the end of the year.
Following completion of the spin-off, ITT Corp. will continue to be a diversified global manufacturer of highly engineered industrial products and high-tech solutions. Its global platform will include ITT’s current industrial process business, as well as its motion technologies, interconnect solutions and control technologies businesses. Second, a standalone water technology corporation with a new corporate brand name will be formed through the combination of three of ITT’s current businesses: residential and commercial water, flow control and water and wastewater. Finally, the existing Defense & Information Solutions segment will be renamed and rebranded as a new standalone company that is an industry-leading provider of innovative technologies and operational services to meet the enduring requirements of the global military, government and commercial customers.