At least six major private equity firms are competing to buy the industrial packaging segment of Illinois Tool Works Inc. (ITW), sources told Reuters. 

A report by Reuters said that the buyout deal could be worth USD3 billion.

Private equity firms Carlyle Group LP, Blackstone Group LP, Apollo Global Management LLC, Bain Capital LLC, Ares Management LLC and a consortium of Onex Corp and the Canada Pension Plan Investment Board (CPPIB) advanced to the second round of bidding, Reuters sources said. 

ITW in September said that it will be putting up its industrial packaging unit for sale. The move will be made as the conglomerate seeks to streamline its diversified business lines, the report said. 

According to Reuters, ITW's packaging business manufactures steel, plastic and paper products used for bundling, shipping, and protecting transported goods. The Glenview-based company has partnered with brands including Signode, Strapex, Angleboard and Mima. 

ITW generated revenue of around USD2.4 billion last year. The global industrial manufacturer belongs to the Fortune 200 list of America's largest companies in terms of revenue, its website said.