Graco acquires Finishing businesses of Illinois Tool Works (Gema, Binks, DeVilbiss, Ransburg, BGK)

Graco acquired Finishing businesses of Illinois Tool Works (Gema, Binks, DeVilbiss, Ransburg, BGK) for $650 million, a transaction completed in April 2012, structured as all cash.

Finishing businesses of Illinois Tool Works (Gema, Binks, DeVilbiss, Ransburg, BGK) operates in Industrial, is based in operations in the United States, Switzerland, United Kingdom, Japan, Brazil and Mexico; approximately 900 employees worldwide, had revenue of about 2010 revenues of $305 million (40% Americas, 60% elsewhere). Acquisition of the operations of the liquid and powder finishing businesses of Illinois Tool Works Inc. The businesses manufacture and distribute equipment for industrial liquid finishing, powder coating and automotive refinishing worldwide, with 2010 revenues of $305 million and significant operations in the US, Switzerland, UK, Japan, Brazil and Mexico. Powder finishing centers on Gema; liquid finishing includes Binks industrial pumping, DeVilbiss spray guns, Ransburg electrostatic equipment and BGK curing technology. Under an FTC order at close, the Liquid Finishing businesses were held separate and later divested; Graco retained the Powder Finishing (Gema) business.

This acquisition is an excellent strategic fit with Graco's Industrial segment. It will advance all of our stated core growth strategies: new products and technology, geographic expansion, and new markets. We gain a leading position in industrial powder paint equipment — a growing global market where we have no offering today.

Leading position in industrial powder paint equipment, a growing global market where Graco had no offering, plus widely recognized premium brands. Operations expected to be cash accretive immediately; consolidated into Graco's Industrial segment. Graco Industrial segment (Powder Finishing/Gema retained; Liquid Finishing held separate under FTC order and divested)

Advisory firms were not disclosed for this transaction.