WHITE PLAINS, N.Y. - ITT Corp. announced that its board of directors has unanimously approved a plan to separate the company’s businesses into three distinct, publicly traded companies. Under the plan, ITT would execute tax-free spinoffs 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 following the completion of the transaction. ITT expects to finalize and execute the plan before the end of the year.
“For nearly a century, ITT has been known for transformative strategies that create value for customers and shareowners,” said Steve Loranger, chairman, president, and chief executive officer of ITT. “In recent years, we have nurtured and grown our unique portfolio of businesses, which are now poised to emerge as three strong and focused standalone companies, with leading products and market positions, highly skilled employees, and tremendous value-generating potential for shareowners. In today’s business environment, we believe this strategy is the best approach to unlock this value and position the three businesses to grow and serve customers as focused global companies. Each new company will be more nimble and able to build stronger more intimate customer relationships to accelerate mutual success.”
Loranger continued, “We believe each of these future companies will be strategically well positioned for growth, nicely capitalized, with global capabilities, outstanding operating track records, and world-class leadership. In addition, we believe the transformation plan will provide more focused opportunities for our employees, who will be instrumental in the future success of all three companies.”
Following completion of the spinoff, 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.
After the spinoff, 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 & Commercial Water, Flow Control, and Water & Wastewater.
Also following the spinoff, the existing Defense & Information Solutions segment will be renamed and rebranded as a new standalone company that provides technologies and operational services to meet the needs of military, government, and commercial customers.
Effective upon the completion of the transaction, the new ITT Corp. will be led by ITT’s current chief financial officer, Denise Ramos, who will serve as its future chief executive officer. Its chairman of the board will be Frank MacInnis, currently a director of ITT Corp. and the chairman and former chief executive officer of EMCOR Group Inc. The water technology businesses will become a new company to be led by Gretchen McClain, currently president of ITT Fluid and Motion Control, who will serve as its future chief executive officer. Its executive chairman of the board will be Steve Loranger, currently chairman, president, and chief executive officer of ITT Corp. The Defense & Information Solutions business will become a new company to be led by David Melcher, currently president of ITT Defense & Information Solutions, serving as its future chief executive officer. Its chairman of the board will be Ralph Hake, currently a director of ITT Corp. and previously the chairman and chief executive officer of Maytag Corp.
For more information, visit www.transformationitt.com.
Jan. 17, 2011: ITT to Separate Into Three Independent Companies
January 17, 2011