CHARLOTTE, N.C. - Carlisle Companies Incorporated (NYSE:CSL) today announced the signing of a definitive agreement to purchase from Graco Inc. (NYSE:GGG) and its subsidiary Finishing Brands Holdings, Inc. their held separate liquid finishing business assets (“Liquid Finishing Brands”) in a $590 million cash transaction. The Liquid Finishing Brands business was acquired by Graco in April, 2012, as part of its purchase of the liquid and powder finishing businesses of Illinois Tool Works Inc. (NYSE: ITW). The Liquid Finishing Brands business is currently being held separate from Graco’s other businesses pursuant to an order of the U.S. Federal Trade Commission (“FTC”), and Graco is required to sell the business within 180 days after entry of the FTC’s final divestiture order, which occurred on October 6, 2014.
With annual sales of approximately $275 million, Liquid Finishing Brands is a global manufacturer and supplier of liquid finishing equipment and systems serving diverse end markets for paints and coatings, including OE automotive, automotive refinishing, aerospace, agriculture, construction, marine, rail and other industrial applications. The business operates from 26 locations in seven countries with 50% of its sales in the Americas and the remainder primarily in Asia and Europe. Liquid Finishing Brands manufactures and sells products under the well-known brand names of Binks®, DeVilbiss®, Ransburg® and BGK.
The transaction is expected to be accretive to Carlisle in the first year. Carlisle will include Liquid Finishing Brands in a new industry segment named Carlisle Fluid Technologies. The acquisition is subject to FTC and other regulatory approvals and certain other closing conditions.
David A. Roberts , Carlisle’s Chairman and Chief Executive Officer, said, “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. 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. The acquisition of Liquid Finishing Brands fits all of the strategic criteria we established for reinvesting the proceeds from the sale of our Transportation Products segment – namely, purchasing a manufacturer selling high margin, engineered products with an aftermarket tail into attractive global markets. We will work cooperatively to achieve prompt regulatory approval so we can bring Liquid Finishing Brands on board and continue growing this outstanding business both organically and through acquisitions.”
J.P. Morgan is serving as exclusive financial advisor and Dorsey & Whitney LLP is serving as legal counsel to Carlisle.
Source: Carlisle Companies Incorporated
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