ITT shareholders will own shares in all three companies. The water technology businesses will be led by Gretchen McClain, the current president of ITT Fluid and Motion Control. ITT stated that water technology company will be one of the largest pure play water companies, with 90% of its revenues from water and wastewater applications and 55% of revenues from international markets.
White Plains, NY 1/12/11—ITT plans to separate into three separate publicly traded companies. The company’s Residential & Commercial Water, Flow Control and Water & Wastewater businesses will be spun off to create a stand-alone water technology corporation with estimated pro forma 2011 revenues of $3.6 billion. This company will include ITT’s analytical instrument business, consisting of the recently acquired Nova Analytics (see IBO 2/28/10) and OI (see IBO 9/15/10) businesses. ITT’s Defense & Information Solutions segment will also be spun off. The new ITT will consist of the Industrial Process business, Motion Technologies, and Interconnect Solutions and Control Technologies businesses. Structured as tax-free spin-offs, the plan is expected to be executed by the end of this year.