Graco to Sell Liquid Finishing Business Assets
MINNEAPOLIS– Graco Inc., a manufacturer of fluid handling equipment, 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 (ITW) on April 2, 2012. The $590 million cash transaction with Carlisle Companies Inc.is anticipated to close no later than the first quarter of 2015 and is subject to regulatory approval and other customary closing conditions.
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 order from the Federal Trade Commission (FTC). 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.
Graco will continue to hold the Liquid Finishing business separate from its other businesses until a sale process is complete. The day-to-day operations are managed independently by Liquid Finishing business managers under the supervision of a trustee appointed by the FTC and reporting directly to the FTC.