GLENVIEW, IL -- Illinois Tool Works Inc. has finalized an agreement to sell 51 percent of its Decorative Surfaces segment to Clayton, Dubilier & Rice LLC for approximately $1.05 billion in cash.

ITW also will retain a 49 percent equity interest in the new business. ITW and CD&R closed the agreement on Oct. 31.

The new business will operate as Wilsonart International Holdings LLC. ITW's Decorative Surfaces segment included the Wilsonart, Resopal and Arborite brands which the company acquired in 1999.

According to company reports,  the Decorative Surfaces segment accounted for $1.1 billion of ITW's $17.8 billion total revenues in 2011. ITW said in a statement yesterday it "intends to utilize a majority of after-tax transaction proceeds to repurchase shares to help offset associated earnings dilution."

News of the planned sale of Wilsonart was first announced in August.

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