ITW acquires SOPUS Products' Car Care Biz......

[dkryan]

Illinois Tool Works Acquires SOPUS Products' Car Care Business

GLENVIEW, Ill., March 1, 2011 /PRNewswire via COMTEX/ --

Illinois Tool Works Inc. (NYSE: ITW) today announced that it has acquired SOPUS Products' Car Care business, a leading automotive aftermarket consumer products portfolio. SOPUS Products' Car Care business includes the appearance and performance chemical and windshield wiper blade brands of Pennzoil-Quaker State Company dba SOPUS Products, a subsidiary of Shell Oil Company. Terms of the transaction were not disclosed.


SOPUS Products' Car Care business includes such well known brands as Rain-X(R), Black Magic(R) and Gumout(R), among others. The portfolio offers vehicle owners a comprehensive range of products for improving windshield visibility, protecting and cleaning vehicles, and improving vehicle performance. 2010 revenues were approximately $300 million. "We believe this portfolio of car care products complements and augments our existing automotive aftermarket platform, which includes Permatex, Wynn's and Slime," said David Parry, ITW vice chairman. "With this acquisition, ITW is well positioned to continue to expand its car care solutions for customers around the world."

About ITW

With nearly 100 years of history, Illinois Tool Works Inc. (NYSE: ITW) is a Fortune 200 global diversified industrial manufacturer. The Company's value-added consumables, equipment and service businesses serve customers in developed as well as emerging markets around the globe. ITW's key business platforms, including welding, automotive OEM, industrial packaging, food equipment, construction, polymers and fluids, test and measurement, electronics, decorative surfaces and automotive aftermarket, employ more than 60,000 people worldwide. ITW's revenues totaled $15.9 billion in 2010, with more than half of these revenues generated outside of the United States.

SOURCE Illinois Tool Works Inc.

 

[Johnny]

Good, now maybe Shell can just focus on their core business, lubricants. One name they failed to mention in that notice was the Slick 50 which was part of that transaction.

 

[tom slick]

I wonder why ITW in interested in the car care business?

 

[daves87rs]

Originally Posted By: tom slick
I wonder why ITW in interested in the car care business?



That is a good question..

 

[Johnny]

This is why:

"2010 revenues were approximately $300 million. "We believe this portfolio of car care products complements and augments our existing automotive aftermarket platform."

$$$$$

 

[cbear]

ITW has a very strong chemical portfolio. They also require that each division to generate a profit, or they get rid of it. ITW will invest in what it aquires, but it must turn a profit.

 

[dkryan]

Originally Posted By: cbear
ITW has a very strong chemical portfolio. They also require that each division to generate a profit, or they get rid of it. ITW will invest in what it aquires, but it must turn a profit.


+1

ITW is an extremely lean and well run company and a great stock to own! However, it's not just one single company, but rather, dozens of companies across a well diversified product base that usually stand alone to perform well in their particular market.

Acquisitions by ITW do not normally result in mass layoffs or restructuring, nor do they practice a "turn the company inside out" approach.

They research carefully before making acquisitions, preferring to acquire companies with low debt, good market share, good management structure, and a product with growth potential.

I will admit there are numerous times when their stock performance is driven almost exclusively by their keen acquisitions and the value those acquisitions add to the overall company.

Their stock was a little flat a few years back (whose wasn't in 2008?) owing to a noticeable reduction in acquisitions by ITW.
The problem? There weren't a lot of really good, well run companies at a good price.