Wednesday, January 12, 2011
ITT Splits Into Three Companies
ITT Corp. announced plans Wednesday to separate its businesses into three distinct, publicly traded companies –– ITT Corp., ITT water technology division and ITT Defense and Information Solutions segment. ITT said it believe 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.
“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," said Steve Loranger, chairman, president and CEO of ITT. “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 include the company's current Industrial Process, Motion Technologies, Interconnect Solutions and Control Technologies businesses. The stand-alone water technology corporation will be formed through the combination of three of ITT’s current businesses: Residential & Commercial Water, Flow Control and Water & Wastewater. The new Defense & Information Solutions segment will be renamed and rebranded, with products and services including night vision, integrated electronic warfare, networked communications, force protection, radar, global intelligence, surveillance and reconnaissance systems, composite structures, space-based satellite imaging, weather and climate monitoring, and navigation and imaging systems, as well as maintenance, engineering and professional services.
Upon the completion of the transaction, the new ITT Corp. will be led by ITT’s current chief financial officer, Denise Ramos. The water technology businesses will become a new company to be led by Gretchen McClain, currently president of ITT Fluid and Motion Control. (Loranger will become the water technology division's executive chairman of the board.) The Defense & Information Solutions business will be led by David Melcher, currently president of ITT Defense & Information Solutions.