- Wood manufacturing finishing supplier Graco Inc. (NYSE: GGG) says it buy the finishing businesses of Illinois Tool Works Inc. (NYSE: ITW) in a $650 million cash transaction. Expected to close in June pending regulatory approval, the ITW brands involved include Gema powder finishing equipment, Binks industrial
pumping solutions, DeVilbiss finishing guns, Ransburg electrostatic
guns, and BGK curing technology.
In March, ITW announced the integration of the Binks, DeVilbiss, Ransburg and BGK brands into one operating unit, ITW Finishing Equipment Americas. The ITW finishing businesses employ 900 worldwide in the manufacture and distribution of equipment for industrial liquid finishing, powder coating and automotive refinishing, worldwide. Graco said the ITW operations had 2010 revenues of $305 million, 40 percent in the Americas and 60 percent were elsewhere.
Graco says it plans to finance the acquisition of ITW finishing through a new $450 million revolving credit facility (U.S. Bank National Association and JP Morgan are joint lead arrangers) and long-term debt of $300 million.
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