Graco Inc. recently announced that it has entered into a definitive agreement to purchase the operations of the finishing businesses of Illinois Tool Works Inc. (ITW) in a $650 million cash transaction. The ITW businesses manufacture and distribute equipment for industrial liquid finishing, powder coating, and automotive refinishing. The businesses had 2010 revenues of $305 million, 40% in the Americas and 60% elsewhere. The company has significant operations in the U.S., Switzerland, UK, Japan, Brazil and Mexico, with sales offices and distribution capabilities in several additional countries.
“This acquisition is an excellent strategic fit with Graco’s Industrial segment,” said Pat McHale, Graco CEO. “It will advance all of our stated core growth strategies: new products and technology, geographic expansion, and new markets. We gain a leading position in industrial powder paint equipment-a growing global market where we have no offering today.
“In liquid finishing, the acquired product technologies are complementary to Graco’s industrial offering and also give us a leading position in automotive refinish where we have little presence. The acquired businesses generate two-thirds of revenue outside North America, increasing our critical mass in important international and emerging markets.”
For more information, visit www.itw.com