ITT Corporation (NYSE: ITT) is moving forward with a plan to split the firm into a trio of “distinct, publicly traded” companies.
Following the shift, the “ITT Corporation” brand will live on as a diversified global manufacturer of highly engineered industrial products and high-tech solutions.
The firm’s water technology business will now function independently, under a new name. Included will be ITT’s Residential & Commercial Water, Flow Control and Water & Wastewater businesses.
ITT’s $5.8 billion defense technology and information solutions business will also break off and adopt a new name. The firm will continue to be led by Dave Melcher.
Here are the financial specifics, according to the firm:
“ITT would execute tax-free spinoffs to shareholders of its water-related businesses and its Defense & Information Solutions segment. Following completion of the transaction, ITT will continue to trade on the New York Stock Exchange as an industrial company that supplies highly engineered solutions in the aerospace, transportation, energy and industrial markets. Under the plan, ITT shareholders will own shares in all three corporations following the completion of the transaction.”
