ITW to Acquire Premark

Illinois Tool Works Inc. (ITW) (Glenview, IL), whose wide range of products includes ZIP-PAK resealable packaging, said Thursday it has agreed to acquire commercial food equipment maker Premark International Inc. in a $3.4 billion deal.

The company said shareholders of Deerfield, IL-based Premark will receive ITW stock with a market value of $55 for each Premark share. The amount can vary, however, if ITW's average share price is more than 15% higher or lower than $78.03 in the 20 trading days prior to closing.

Premark shares closed up 3/16 at 34-1/4 Thursday while shares in ITW ended up 7/16 at 80-1/8.

"At the current market prices of ITW stock, the merger is expected to be modestly accretive," ITW said.

Premark will become a wholly owned subsidiary of ITW. ITW produces a wide range of products for food and beverage industries including adhesives, polymers, plastic fasteners and spray guns.

Premark has three operating segments, the largest of which is commercial food equipment. Other segments are decorative products such as laminates for kitchen countertops and consumer products which include small electrical appliances.

Key brand names include Hobart, Vulcan, Traulsen, Wilsonart, Florida Tile, West Bend and Precor.

ITW has annual revenues of about $5.6 billion and around 29,000 employees, while Premark has annual revenues of around $2.7 billion and employs about 19,000.

Edited by Bill Noone