ITW Acquire Leading Manufacturer of Thermal Processing Equipment

Illinois Tool Works Inc. (NYSE: ITW) today announced that it has acquired Despatch Industries, a leading provider of thermal processing equipment for the solar, carbon fiber and other thermal technology markets. Terms of the transaction were not disclosed.

With full-year 2011 revenues expected to exceed $200 million, Despatch Industries products include solar cell firing furnaces, carbon fiber process ovens, and thermal processing equipment. Despatch furnaces and industrial ovens primarily serve customers in the solar energy, advanced materials and electronics industries. The company was founded in 1902 and is located in Lakeville, Minnesota.

"We are excited about this acquisition as the Company's core thermal technology aligns well with certain of our other existing electronics equipment businesses," said Steve Martindale, executive vice president. "As a leader in thermal processing, Despatch provides us with immediate access to attractive and high growth industries such as solar and carbon fiber as well as the opportunity to extend sales of certain of our existing products into these new markets."

"This is an exciting opportunity for Despatch employees and customers as it will allow us to accelerate our growth and innovation under the global umbrella and strength of ITW," said Patrick Peyton, Despatch CEO. "Despatch's strong market presence and proven technology, coupled with ITW's global breadth and foundational strength, will facilitate a strong expansion of technology advancements and next-generation tools."

With nearly 100 years of history, Illinois Tool Works Inc. (NYSE: ITW) is a Fortune 200 global diversified industrial manufacturer. The Company's value-added consumables, equipment and service businesses serve customers in developed as well as emerging markets around the globe. ITW's key business platforms, including welding, automotive OEM, industrial packaging, food equipment, construction, polymers and fluids, test and measurement, electronics, decorative surfaces and automotive aftermarket, employ more than 60,000 people worldwide. ITW's revenues totaled $15.4 billion in 2010, with more than half of these revenues generated outside of the United States.

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