ITT Industries Closes Sale of Automotive Electrical Systems Unit
28 September 1998
ITT Industries Closes Sale of Automotive Electrical Systems Unit to Valeo
WHITE PLAINS, N.Y., Sept. 28 -- ITT Industries, Inc.
announced today that it has closed the sale of its automotive
Electrical Systems business to Valeo, SA of France. The transaction, which
was announced on June 25, 1998, is valued at approximately $1.7 billion. On
Friday, September 25, 1998, the company completed the sale of its Brake and
Chassis business unit to Continental AG for $1.93 billion. Total after-tax
cash proceeds from both transactions is approximately $2.7 billion.
"With the conclusion of both sales, we are now free to focus on our
strategic growth prospects, including acquisitions that can enhance the
positions of our existing businesses," said Travis Engen, chairman, president
and chief executive of ITT Industries. "Our previously announced $1.1 billion
stock repurchase program is already well underway. Further, we will be able
to substantially improve our capital position to provide the financial
flexibility to grow all of our business lines."
Engen said with both transactions completed in the third quarter as
expected, further details of the results of the divestments will be included
in the third quarter earnings report to be released on October 20, 1998.
About ITT Industries
ITT Industries, Inc. (http://www.ittind.com) is a global industrial
manufacturing company with leading positions in the markets that it serves.
Following the divestiture of the company's automotive brakes and electrical
systems businesses, the company expects to generate annual global sales of
$4.4 billion. ITT Industries is the world's largest producer of pumps, systems
and services to move, measure and control water and other fluids. The company
is also a leading supplier of sophisticated military defense systems,
including night vision devices, secure communication systems and avionics, and
provides advanced technical and operational services to a broad range of
government agencies. ITT Industries is a leading provider of electrical
interconnects for cellular telephones, aerospace, network communications,
"smart cards" for personal data storage, and PC cards for laptop computers.
Further, ITT Industries provides products for highly-focused automotive
markets, such the Koni(R) brand shock absorbers serving high-end, specialized
auto needs in addition to shock absorbers for trains and bridges, fluid
handling products such as brake and fuel line tubing, and brake friction
materials. Based in White Plains, NY, ITT Industries employs approximately
34,000 people around the world.
In addition to the New York Stock Exchange, ITT Industries' stock is
traded under the symbol ("IIN") on the Midwest, Pacific, London, Frankfurt and
Paris exchanges.
ITT Industries' and its subsidiaries' news releases are available at no
charge via fax and the Internet. For ITT Industries news and information on
the Internet, visit http://www.ittind.com. To receive releases by fax, call
800-758-5804, extension 110006.