It looks like the normally acquisitive Illinois Tool Works Inc. (NYSE:ITW) may be ready to pick up its M&A activity. Chief executive David Speer said Wednesday in a quarterly earnings call with analysts -- via this
Dow Jones report -- that he's seeing early signs of a thaw in the acquisition market that could lead to more deals being completed late in the year.
ITW, which operates 800-plus businesses in various sectors, including construction materials, electronics and food service equipment, to name a few, has in the past relied heavily on acquisitions to bump up the company's revenue, which was down 26% to $3.39 billion for the second quarter.
ITW said it acquired five companies in the second quarter with revenues totaling $54 million. In January, Steer predicted ITW would in 2009
acquire companies with total sales of $400 million to $600 million. The company has a way to go to meet that projection, but it has a history of fast-paced dealmaking.
In the second quarter of 2008, ITW scooped up 10 companies with an aggregate $308 million in revenue, and for the year, Speer oversaw the acquisition of 50 companies that added a total of $1.5 billion in revenue to the diversified manufacturer.
It may be awhile before ITW reaches that same pace, but at least it appears that Speers is starting to warm up his M&A muscles. -
Sara Behunek
Join Corporate Dealmaker's LinkedIn forum
Juergen Lasowski
And the winners are...
