MTS Systems Test & Simulation Business
2021
Outcome
Expanded ITW's Test & Measurement segment, adding advanced automotive and aerospace structural testing platforms.
Illinois Tool Works
Acquisitions
Illinois Tool Works Acquisitions
3
Major Deals Covered
What are Illinois Tool Works's biggest acquisitions?
This page covers 3 major deals from 1993 to 2021, each with its price where disclosed and the reason behind it.
- Major deals covered
- 3
- First deal
- 1993
- Most recent
- 2021
| Company | Year | Price | Purpose |
|---|---|---|---|
| MTS Systems Test & Simulation Business | 2021 | Undisclosed | Acquired premier mechanical testing and simulation business to complement Instron's materials testing division. |
| Premark International | 1999 | Undisclosed | Acquired diversified equipment manufacturer to establish a premier position in commercial food service equipment (Hobart). |
| Miller Electric Mfg. Co. | 1993 | Undisclosed | Acquired Wisconsin-based leader in industrial arc welding equipment and wire feeders. |
- What companies has Illinois Tool Works bought?
- Major acquisitions by Illinois Tool Works documented here include MTS Systems Test & Simulation Business (2021), Premark International (1999) and Miller Electric Mfg. Co. (1993).
- What is Illinois Tool Works's most recent acquisition?
- The most recent Illinois Tool Works acquisition documented here is MTS Systems Test & Simulation Business, in 2021.
Premark International
1999
Outcome
Created ITW's Food Equipment segment, which became one of its most profitable and enduring global cash flow engines.
Miller Electric Mfg. Co.
1993
Outcome
Grew into the foundation of ITW's Welding segment, commanding leading market shares among industrial fabricators worldwide.
Illinois Tool Works's Growth & Acquisition Strategy
ITW's forward growth strategy centers on three core strategic initiatives: deepening "Customer-Back Innovation" (CBI), accelerating penetration of electric vehicle (EV) automotive components, and expanding specialized industrial testing via Instron. In automotive, ITW is leveraging its fastener and fluid engineering expertise to design lightweight battery pack mounting systems, high-voltage cable channels, and thermal management clamps, increasing its dollar content per electric vehicle by up to 30% compared to combustion cars. In Food Equipment, Hobart is introducing automated energy- and water-saving commercial dishwashers to help hospitality clients counter severe utility price increases. Concurrently, ITW continues tuck-in acquisitions of high-margin, niche market leaders that fit its 80/20 business architecture.
How Illinois Tool Works Makes Money
ITW operates an engineered product manufacturing model built on customer-back innovation and decentralized operational autonomy. Instead of centralizing decision-making at corporate headquarters, ITW empowers over 80 independent business units to operate like nimble entrepreneurial companies. Engineers collaborate directly on-site with automotive assembly plant managers, construction contractors, and commercial kitchen operators to solve specific manufacturing pain points, patenting custom-engineered components that are sole-sourced into customer production lines. Revenue is balanced across consumables (fasteners, adhesives, welding wire), specialized capital equipment (Hobart commercial dishwashers, Miller welding power sources, Instron testing machines), and high-margin recurring replacement parts and service contracts.
Illinois Tool Works Acquisitions FAQ
Does Illinois Tool Works acquire other companies?
Yes, Illinois Tool Works executes targeted acquisitions to integrate complementary technologies, expand intellectual property, and enter new market verticals.
What is Illinois Tool Works's acquisition strategy?
Illinois Tool Works focuses on bolt-on acquisitions that can be rapidly integrated into its core technology architecture and commercial distribution channels.
How does Illinois Tool Works fund its acquisitions?
Acquisitions are typically funded through cash from operations, revolving credit facilities, and strategic equity considerations.
What was one of Illinois Tool Works's notable acquisitions?
Illinois Tool Works has acquired specialized technology assets that enhance its core platform capabilities and expand its addressable customer base.
How does Illinois Tool Works handle post-merger integration?
By migrating acquired codebases into its unified cloud infrastructure and retaining key engineering talent within specialized innovation pods.
Are acquisitions a primary or secondary growth driver?
Inorganic growth is secondary to robust organic product development, serving as a tactical accelerator for specific strategic capabilities.
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