Carlyle Group LP, the world’s second- biggest manager of alternative assets such as private-equity funds and real estate, agreed to buy the industrial-packaging business of Illinois Tool Works Inc. for $3.2 billion.

Carlyle will contribute equity for the deal from its Carlyle Partners VI fund, which closed with $13 billion in November, according to a statement today from the Washington- based firm. Illinois Tool will use the proceeds to help finance a planned buyback of about 50 million shares by year-end to offset the dilution of per-share earnings, the company said in a separate statement.

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