ITT Corporation (NYSE: ITT) is now forecasting more clearly what its special situation break-up will look like. This was recently featured by 24/7 Wall St. as one of our picks in “value in machinery and equipment” but the special situation was not considered because it was not fully formalized and we like to evaluate businesses on a standalone basis. The company’s previously announced spin-off of its water technology and water services business and its Defense & Information Solutions operations is becoming more clear. Upon completion of the spinoffs ITT shareholders will own shares in all three corporations.
ITT Corporation will operate its core businesses and will continue to trade on the New York Stock Exchange, under the symbol “ITT.” ITT Corporation will retain the current corporate name, logo and “Engineered for life” company tagline and its new description is “a global specialist in the engineering and manufacturing of critical components that provide highly customized solutions for its customers.”
The newly separated companies also intend to have their shares listed on the New York Stock Exchange. The future water company will be named Xylem and will list under the ticker symbol “XYL.” The future defense company will be named ITT Exelis and will list under the ticker symbol “XLS.”
Until completion of the spinoffs, ITT Corporation will continue to operate with the existing segment structure and division names. Xylem and ITT Exelis plan to unveil their new logos and further information on their new brands at a later date.
Shares of ITT recently closed at $57.26. Its 52-week range is $42.05 to $64.00. The current market capitalization is $10.5 billion, but that will soon change.