The company is spinning off its water technology and creating a defense company. ITT’s core business will continue under the ITT Corporation name.
It will also retain ITT Mission Systems, the group headquartered in the Springs, which performs satellite maintenance and other work at both Peterson and Schriever Air Force bases.
The future water company will be named Zylem, once the separation is complete. It will consist of the water and wastewater, residential and commercial water and flow control businesses, including wastewater transport, biological, filtration and disinfection treatment and analytics.
The name comes from the classical Greek and is the tissue that transports waters in plants.
“We are pleased to announce the names of these new companies, as this represents an important step forward in our transformation,” said Steve Loranger, chairman, president and CEO of ITT. “We’re confident that the new businesses will emerge as leaders in their respective industries.”
The future defense company will be named ITT Exelis and will be a leader in command, control, communications, computers, intelligence, surveillance and reconnaissance. The company will supply military, government and commercial customers in the United States and globally.
Following the planned separations, ITT Corporation will retain its current corporate name, logo and tagline. It will keep its engineering and manufacturing of components that provided customized solutions – working in niche markets such as harsh-environment connectors, aerospace actuation and valves, friction brake pads, railway equipment and industrial process applications.
The company will give tax-free spin-offs to shareholders of its water technology and defense information segment. ITT shareholders will own shares in all three corporations after the transaction is complete.
ITT Mission Systems is headquartered in Colorado Springs, and is unaffected by the company spin-offs. It remains one of the most active local companies in receiving contracts from the Department of Defense for work in Afghanistan and Iraq.
Recent contracts for the company include:
– A $68 million contract to provide mainentance, supply and transportation services in support of the Ary in Kuwait and direct theater support for southwest Asia missions. Work will be performed at Camp Arifjan, with an estimated completion date of Feb. 28, 2015.
– A $20.8 million contract to provide system engineering integration and sustainment of ground-based missile warning, missile defense and space surveillance sensors at Peterson Air Force Base in Colorado Springs.
– A $7.7 million modification to a contract for system engineering integration and sustainment of ground-based missile warning, missile defense and space surveillance systems at Peterson Air Force Base.
– A $267 million contract that modifies and existing contract to provide base operations and security support services in support of the military troops and equipment in Kuwait. Work is expected to be completed by Sept. 28, 2015.