The ITT water-related businesses will be spun off as a standalone water technology company, while the defence segment will also become a separate standalone company. ITT Corp will continue as a standalone, highly engineered industrial company.
Following the spinoff, a standalone water technology company with a new corporate brand name will be formed by combining three current ITT businesses: Residential & Commercial Water, Flow Control and Water & Wastewater, including biological, filtration and disinfection treatment and analytics. The portfolio will cover the transport, testing and treatment of water, focusing on the residential, commercial, municipal, agricultural, construction, building services, dewatering, beverage and leisure marine markets, as well as analytical instrumentation for water and wastewater, environmental, medical and beverage applications. The future water technology business will have pro forma 2011 revenues of approximately US$3.6 billion.
When the transaction is completed, ITT Corp’s global platform will include ITT’s current Industrial Process, Motion Technologies, Interconnect Solutions and Control Technologies businesses. ITT Corp’s portfolio will include advanced technology industrial pumps, valves and control systems for the oil and gas, mining, chemical, power generation, and pulp and paper markets. Pro forma 2011 revenues for the future ITT Corp are estimated at US$2.1 billion.
ITT expects to execute the plan before the end of the year.