Film manufacturer CFC International acquired by ITW

Worldwide holographic and specialty coated film manufacturer CFC International, Inc. has entered into a definitive agreement to be acquired by an affiliate of Illinois Tool Works Inc.

Under the terms of the agreement, which was recommended by a special committee comprised entirely of independent directors of CFC and unanimously approved by CFC's Board of Directors, ITW, through a subsidiary, will acquire all outstanding shares of common stock of CFC. The transaction is expected to close in the third quarter of 2006.

The holders of approximately 58 per cent of CFC's outstanding voting common stock have adopted the merger agreement and approved the merger by written consent. As a result, no further stockholder action will be required to approve the transaction.

Roger Hruby, chairman of CFC, said, 'We believe the merger will provide enhanced value for our stockholders, and is in the best interests of the business, our employees and our customers.' Hruby further added, 'ITW is one of the most respected manufacturing companies in the United States, and CFC has a long history of providing innovative solutions for its customers. We are excited about the possibilities that ITW offers the business and its employees.'