By Ben Klayman
NEW YORK (Reuters) - Illinois Tool Works Inc. (ITW.N: Quote, Profile, Research, Stock Buzz) has enough deals in its pipeline to top the diversified manufacturer's targeted range of acquisitions this year, its chief executive said on Tuesday.
"The opportunity to be at the high end of the range is certainly there," CEO David Speer said of the company's previous forecast for acquiring companies this year with annual sales in the range of $800 million to $1 billion. "With a little luck, we'll be at the high end, maybe even above that.
"Our (deal) pipeline has over $1 billion in deals," he added, speaking at the Reuters Manufacturing and Transportation Summit in New York.
Illinois Tool, whose products include fasteners, food service equipment and countertop materials, has a history of making smaller deals.
Last year, the Glenview, Illinois-based company made 22 acquisitions, adding about $600 million in annualized revenue, or about $27 million per deal. So far this year, it has done 11 deals, adding more than $350 million in annual sales.
Of last year's transactions, 19 were companies with sales of less than $100 million and only three in the current pipeline have more than $100 million, Speer said. Another 30 to 35 deals in the pipeline are under $100 million.
That is not to say Illinois Tool will shy away from larger acquisitions.
"If a bigger opportunity comes along and we think we can create value for our shareholders, we'll certainly act on it," Speer said. Continued...
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