ITW sells finishing group to Graco
Illinois Tool Works Inc. announced that it has completed the sale of its finishing group of businesses to Graco Inc. in a $650 million cash transaction.
The finishing equipment businesses consist of paint spray systems and technologies for a variety of industrial end markets and applications around the world. Key brands include Gema, Ransburg, DeVilbiss, BGK and Binks. These businesses compete in wet industrial finishing as well as powder paint equipment and drying technologies.
"We are pleased to have successfully completed the sale, particularly since Graco presents these businesses with an excellent opportunity to further optimize their long-term growth," said David B. Speer, chairman and chief executive officer. "This divestiture aligns with ITW's strategic focus on our core platform growth opportunities with solid growth prospects and strong returns. While acquisitions remain a part of our overall growth story, we will continue to selectively divest businesses that no longer represent a strong fit with our core platforms."
In powder finishing, Graco will add Gema, a global leader in superior powder coating technology. In industrial liquid finishing, the acquisition includes Binks spray finishing equipment, DeVilbiss spray guns and accessories, Ransburg electrostatic equipment and accessories and BGK curing technology (excluding Powder Finishing, collectively known as the “Liquid Finishing” businesses).
As disclosed on March 27, 2012, the FTC has issued an order for Graco to hold the Liquid Finishing assets separate from the Powder Finishing and other Graco businesses while the FTC investigates and considers a settlement proposal from Graco. In compliance with the FTC’s order, the Liquid Finishing businesses have been acquired into a structure that limits commingling of the Liquid Finishing operations with Graco’s other businesses. Although the Liquid Finishing businesses are wholly-owned by Graco, they will be run independently by existing management under the supervision of a trustee who reports directly to the FTC.
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