SurfaceFabrication.com |

Illinois Tool Works Inc. announced on August 11 that its board of directors had authorized a plan to commence the divestiture process for several businesses, including the Decorative Surfaces segment consisting of the Wilsonart and related laminate businesses. ITW has retained Goldman Sachs to advise on the divestiture process for the Decorative Surfaces units.

Wilsonart was acquired in 1999 by ITW as part of the Premark International transaction. In 2007, the decorative surfaces segment had revenues of $1.2 billion and operating margins of 13 percent. Founded in 1956, Wilsonart manufacturers and distributes a variety of custom construction products for commercial, residential and renovation applications. Products include decorative laminate, solid surface, flooring, decorative materials, adhesives and custom edges. The group has 16 business units worldwide with the majority of revenues based in North America. International businesses, represented by the Wilsonart, Polyrey and Resopal brand names, are located in France, Germany, United Kingdom, Thailand and China.

"The Decorative Surfaces group has a variety of premium brands and is a very valuable asset,” said David B. Speer, chairman and chief executive officer. "As a result, we have received a number of inquiries about the laminate businesses from potential buyers over the years. We believe the proposed sale of these businesses would provide a new owner the opportunity to fully leverage the depth and breadth of the decorative surfacing products."

ITW is also putting Click Commerce, a supplier of software and consulting services up for sale. As part of the announcement, ITW said that it plans to reclassify these businesses to “discontinued operations” in the third quarter of 2008.

In response to the announcement by ITW, Wilsonart issued a statement to the press explaining that there would be no employee layoffs because of the ITW decision, and Bill DiGaetano, Wilsonart’s President – North America, issued a memo to all Wilsonart employees stating, “At this point, all I can tell you is that this is the beginning of a process. I, for one, feel very good about the opportunities that it presents to our company. But there will be many unknowns over the next months, and ultimately, more change for Wilsonart.”