Graco acquires High Pressure Equipment Company (HiP)

Graco acquired High Pressure Equipment Company (HiP) for $160 million, a transaction completed in January 2015, structured as all cash.

High Pressure Equipment Company (HiP) operates in Industrial, is based in Erie, Pennsylvania (USA), with engineering and production base in Stoke-on-Trent, Staffordshire, UK. Headquartered in Erie, PA, HiP designs and manufactures valves, fittings and other flow control equipment engineered to perform in ultra-high pressure environments, from 10,000 to 150,000 psi. HiP's products are used on high-value assets in industrial applications including Oil & Natural Gas infrastructure, the waterjet cutting and cleaning industry, and industrial research programs. HiP also maintains an engineering and production base in Stoke-on-Trent, Staffordshire, UK. Agreed via purchase and sale agreement dated December 31, 2014 by Graco Inc. and Graco Fluid Handling (C) Inc.

The acquisitions we are announcing today support our strategic growth plans to expand into new markets and geographies, while diversifying our portfolio of precision products for critical applications.

Engineered ultra-high-pressure (10,000-150,000 psi) flow control products for high-value Oil & Natural Gas and waterjet applications; HiP included a favorable tax election expected to save Graco ~$1.5 million per year in cash taxes through 2029. Together with Alco Valves, the four-business package was expected to provide approximately 13 to 15 cents of EPS accretion in 2015. Graco Industrial Products Segment

Advisory firms were not disclosed for this transaction.