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 (ITW).

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.

CFC International formulates, manufactures, and sells chemically- complex, transferable, multi-layer coatings for use in many diversified markets, such as holographic packaging and authentication seals, furniture and building products, pharmaceutical products and transaction cards (including credit cards, debit cards, ATM cards, and access cards), and intaglio printing.