ITT Divests InTelCo Management To Delticus - Quick Facts

(RTTNews) - ITT Inc. (ITT) announced Thursday that it has divested InTelCo Management LLC, a wholly owned subsidiary that holds long-term liabilities including asbestos liabilities and related insurance assets, to Delticus HoldCo, L.P., a corporate liability consolidation vehicle and portfolio company of private equity firm Warburg Pincus LLC. At closing, ITT contributed approximately $398 million in cash to InTelCo.

The transaction represents the culmination of ITT's multi-year strategy to reduce its legacy liability profile. This transaction, along with its successful U.S. pension plan termination executed in October 2020, position ITT very favorably for future growth and capital flexibility.

The transaction allows ITT to permanently divest its legacy asbestos liabilities and transfer these to a high-quality partner in Delticus. It removed all asbestos obligations, related insurance assets and associated deferred tax assets from the company's consolidated balance sheet.

Delticus will assume the operational management of InTelCo, including the administration of all the asbestos claims and collection of existing insurance policy reimbursements.

The estimated impact of the divesture will be a one-time after-tax loss of approximately $27 million to be recorded in the second quarter of 2021 and excluded from adjusted earnings per share.