ITT Corporation (ITT), with the unanimous consent of its board of directors, has decided to divide into three separately trading public companies. ITT Corp.’s water-related businesses and its Defense & Information Solutions segment will be segregated into two different companies, with its manufacturing and engineering operations remaining in the existing company.
The shares of the new companies will be distributed to the ITT shareholders. The spin-off is expected to be completed before the end of 2011, following which ITT will continue to trade on the New York Stock Exchange as a leading provider of highly engineered solutions in the aerospace, transportation, energy and industrial markets.
After the spin-off, the newly formed standalone Water Technology Corporation will include Residential & Commercial Water, Flow Control and Water & Wastewater (including biological, filtration and disinfection treatment and analytics) businesses and is estimated to generate pro forma revenue of $3.6 billion in 2011.
The new standalone company to be formed by the spinoff of Defense & Information Solutions segment is expected to generate pro forma revenue of $5.8 billion in 2011. Revenue to be generated by the future ITT Corporation is anticipated at $2.1 billion.
Upon closure of the transaction, each company is expected to be listed on the New York Stock Exchange and will have its independent board of directors. The spin-offs do not require a shareholder vote but are subject to regulatory approvals.
ITT Corporation is confident that the three new companies will create significant value for the shareholders and provide exciting prospects for their customers and employees. Throughout the completion phase of the transaction, the company expects to maintain its current quarterly dividend.
ITT plays an important role in vital markets, including water and fluids management, global defense and security, and motion and flow control. It possesses industry leading brands in the Fluid Technology and Motion & Flow Control businesses. The company is well diversified and serves attractive end markets with a broad geographic footprint.
Headquartered in New York City, ITT Corporation is a global multi-industry leader in high-technology engineering and manufacturing services. It is engaged in the design, manufacture, and sale of a wide range of engineered products and services for three vital markets: water and fluids management, global defense and security, and motion and flow control. Major competitors of ITT Corporation are Lockheed Martin Corporation (LMT) and Raytheon Co. (RTN).
ITT CORP (ITT): Free Stock Analysis Report
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RAYTHEON CO (RTN): Free Stock Analysis Report
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