MINNEAPOLIS - Graco Inc. said it will sell the assets of finishing equipment brands Binks, DeVilbiss, Ransburg and BGK to Carlisle Companies for $590 million. Graco obtained the Liquid Finishing business in 2012 as part of its acquisition of the Finishing Brands business from Illinois Tool Works.
The transaction, announced Oct. 8, is expected to close by the first quarter of 2015. Graco had been ordered to divest itself from these business by the Federal Trade Commission, dating back to its $650 million acquisition on April 2, 2012. Graco (NYSE:GGG) said the Liquid Finishing business assets include the development, manufacture and sale of Binks spray finishing equipment, DeVilbiss spray guns and accessories, Ransburg electrostatic equipment and accessories, and BGK curing technology. The Gema powder coating business, which had also been part of the 2012 purchase, was consolidated into Graco's Industrial segment.
“The Gema business is a strong performer and an outstanding strategic addition to our portfolio,” said Patrick J. McHale, Graco’s president and CEO. “We are happy to have Gema as part of Graco and are looking forward to continuing to build upon its strengths.”
Graco said it will continue to hold the Liquid Finishing business separate from its other businesses until the sale is completed. 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.
Annual sales for the Liquid Finishing brands is approximately $275, according to a statement by Charlotte, NC-based Carlisle (NYSE:CSL). The company said it will create a new industry segment, Carlisle Fluid Technologies, which will include these brands.
“From our years at Graco, both Chris Koch and I are intimately familiar with the markets in which Liquid Finishing Brands participates. When we heard that Liquid Finishing Brands would be sold, we immediately pursued the opportunity to acquire the business," said David A. Roberts , Carlisle’s chairman and CEO.
He added, "We have made a solid commitment to build a new Carlisle segment as a viable, global competitor to Graco with Liquid Finishing Brands as the foundation and believe that it will be a significant contributor to the success of Carlisle in the years to come."
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