Graco, based in Minneapolis, has announced the closing of its $650 million purchase of the finishing businesses from Illinois Tool Works.
Previously, the company signed a contract with the United States Federal Trade Commission (FTC), which allowed the closing acquisition.
Liquid finishing and complementary powder equipment operations, brands and technologies are included in this acquisition. Gema has been added to powder finishing by Graco and is major provider of superior powder coating technology. Graco may allocate around one-third of the acquisition costs to this business. The business acquisition has included Binks spray finishing device, BGK curing technology, Ransburg electrostatic device and its accessories, DeVilbiss spray guns and its accessories, in industrial liquid finishing businesses.
Graco has received an order from the FTC on 27 March, 2012 to possess the Liquid Finishing assets from the Powder Finishing and additional businesses of Graco.
According to the demands of FTC’s order, the Liquid Finishing businesses have been purchased in a form that restricts the amalgamation of the Liquid Finishing operations with other businesses of Graco. Graco wholly owns the Liquid Finishing businesses, which will be separately operated by previous management under a trustee’s direction, who directly reports to the FTC.
On review completion, the final decision and contract will be issued bv the FTC in order to find out which businesses and product assets need to be divested by Graco. Once the final decision and order is issued, there must be completion of divestiture in 180 days.
Source: http://www.graco.com/