ITT Corporation announced last week that it plans to separate its businesses into three distinct, publicly traded companies. Under the plan, ITT would execute tax-free spinoffs to shareholders of its water-related businesses and its Defense & Information Solutions segment. The company expects to finalize and execute the plan before the end of the year.
Following completion of the spinoff, a standalone water technology corporation with a new corporate brand name will be formed through the combination of three of ITT’s current businesses: Residential & Commercial Water, Flow Control and Water & Wastewater (including biological, filtration and disinfection treatment and analytics). The portfolio will span 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.
Pro forma 2011 revenue for the future water technology business is estimated at US$3.6 billion.