Graco Sells Liquid Finishing Business Assets

 

Graco Inc. announced Oct. 10 that it has signed a definitive agreement to sell the liquid finishing business assets that were purchased as part of Graco’s acquisition of the Finishing Brands business from Illinois Tool Works in 2012.

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The $590 million cash transaction with Carlisle Companies Incorporated is anticipated to close no later than the first quarter of 2015 and is subject to regulatory approval and other customary closing conditions.

The divestiture is expected to be in compliance with the final Decision and Order that the United States Federal Trade Commission approved on Monday, October 6, 2014, which requires the Company to complete a sale of the Liquid Finishing business assets within 180 days of the Decision and Order.

The liquid finishing business assets included in the sale to Carlisle are those involved in the development, manufacture and sale of Binks spray finishing equipment, DeVilbiss spray guns and accessories, Ransburg electrostatic equipment and accessories, and BGK curing technology, all of which Graco is required to divest under the Decision and Order. The 2012 acquisition of Finishing Brands from ITW also included Gema, a global leader in powder coating technology, which passed review by the FTC and is now part of Graco. No other Graco businesses or assets are included in the transaction with Carlisle.

“The Gema business is a strong performer and an outstanding strategic addition to our portfolio,” said Patrick J. McHale, Graco’s President and CEO. “We are happy to have Gema as part of Graco and are looking forward to continuing to build upon its strengths.”