ITT to Buy International Motion Control for $395M

ITT Corp. announced it has executed an agreement to acquire privately held International Motion Control [IMC] for $395 million. ITT said it projects the acquisition to be "slightly dilutive" to EPS in '07, but maintained its EPS guidance of $3.44 - $3.50, and expects it to be accretive to earnings in '08. The transaction is subject to normal closing conditions and expected to close in Q3. IMC had revenues of about $200m in '06, with nearly half coming from outside the U.S. IMC has 1,000 employees in 11 global facilities. "IMC adds a complementary mix of highly engineered, mission-critical products to expand our core capabilities in specialty energy absorption and motion control applications," said ITT's chairman and CEO. ITT will host an investor conference call regarding the transaction Tuesday morning. Shares of ITT fell 0.9% to $68.35 on Monday, but gained 0.6% to $68.76 in thin after-hours trading.

Sources: Press release,
Commentary: Water: How to Quench Your Investor Thirst • ITT Corporation Is Making the Most of Its Market • ITT to Pay U.S. Gov't $100 Million, Plead Guilty of Illegal Military Exports
Stocks/ETFs to watch: ITT Corporation (ITT). Competitors: Raytheon Company (RTN), Honeywell International Inc. (HON). ETFs: PowerShares Water Resources (PHO), PowerShares Aerospace & Defense (PPA)
Related: ITT-IMC acquisition presentation [pdf]

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