The transaction is subject to regulatory approval and customary closing conditions and is expected to close by mid-year.
"We are pleased to announce the sale of the Industrial Packaging segment as this represents the last major step in refocusing our portfolio in conjunction with our Enterprise Strategy," said Scott Santi, president/CEO, ITW in a statement.
Proceeds from the sale will be used to partially fund the company's plan to repurchase approximately 50 million shares by the end of 2014 to offset the EPS dilution associated with this divestiture.
As of the end of 2013, the company had repurchased approximately 14 million shares in conjunction with this plan.
To assist the company in the sale process, ITW retained J.P. Morgan Securities and Goldman, Sachs & Co. as its financial advisers and Latham & Watkins as its legal counsel.
FoodProductionDaily.com has contacted ITW and The Carlyle Group for further comment.