Illinois Tool Works (ITW) declared that it has signed a contract with Graco to sell its finishing equipment businesses. The transaction amount is $650 million and the sale is likely to happen after completing regulatory evaluations.
The company’s finishing equipment businesses include paint spray systems and technologies for numerous industrial segments and applications. The company’s main businesses are Binks, Gema, BGK, DeVilbiss and Ransburg, who are major players in drying technologies, wet industrial finishing and powder paint devices.
In 2010, the revenue obtained from the finishing business was $305 million. ITW plans to use the after-tax profits earned from the sale to buy back shares as part of its repurchase program.
David B. Speer, Chairman and CEO of ITW, stated that the company’s finishing businesses provide a wide range of global brands that depict a significant asset. He added that the sale offers an excellent opportunity to the finishing businesses to maximize their long-standing development and profitability.