PaintSquare.com


The First Word in Protective & Marine Coatings

A Product of Technology Publishing / PaintSquare
JPCL | PaintSquare News | Durability + Design | Paint BidTracker

Download our free Blasting Resource Guide eResource Book

Paint and Coatings Industry News

Main News Page


ITW Purchase to Expand Graco’s Reach

Monday, April 18, 2011

More items for Coating Application

Comment | More

Spray equipment giant Graco will further expand its broad reach into the paint equipment market with the purchase of ITW’s group of finishing businesses.

Graco has agreed to pay $650 million in cash for the businesses, which manufacture and distribute equipment for industrial liquid finishing, powder coating and automotive refinishing.

ITW (Illinois Tool Works Inc.) is a century-old Fortune 200 global diversified industrial manufacturer; the finishing businesses have 900 employees and 2010 revenues of $305 million.

Graco, founded in 1926, is a global provider of fluid handling systems and components used in vehicle lubrication, commercial and industrial settings. The company’s revenues totaled $744 million in 2010.


Stock Climbs on ‘Big Deal’

The acquisition will give Minneapolis-based Graco “a leading position in industrial powder paint equipment—a growing global market where we have no offering today,” said Graco CEO Pat McHale.

McHale told the Minneapolis Star-Tribune that the sale was “a big deal for Graco.” He said his company had “knocked on ITW's doors for years and been rejected.”

Wall Street welcomed the deal with a 4 percent jump in Graco stock to $44.90 a share Friday morning, a day after the sale was announced. The company traded at $27 a share in September, the Star-Tribune reported.

“This acquisition is an excellent strategic fit with Graco's industrial segment,” McHale said. “It will advance all of our stated core growth strategies: new products and technology, geographic expansion, and new markets.”

New Markets, Name Brands

The acquired technologies will complement Graco's industrial offerings and give the company “a leading position in automotive refinish, where we have little presence,” McHale said.

Just as significant, he said, the new businesses generate 60 percent of their revenue outside North America, increasing Graco’s footprint in international and emerging markets.

The deal will also bring Graco a number of well-respected brands, including Gema powder finishing equipment, Binks industrial pumping solutions, DeVilbiss auto refinish guns and accessories, Ransburg electrostatic guns and accessories, and BGK curing technology.
 
 

 Graco

The deal will give Graco several well-known brands, including Gema powder finishing equipment.

ITW revamped all of those brands except Gema only last month, uniting them in a new unit called ITW Finishing Equipment Americas. The company said it was consolidating the units, which had their own operations and sales units, “to take advantage of the synergies between the four groups.”

The sale is expected to close in June at the earliest, pending regulatory reviews and other customary conditions.

   

Tagged categories: Acquisitions; DeVilbiss; Equipment manufacturers; Graco; ITW Industrial Finishing; Mergers; Spray equipment

Comment Join the Conversation:

Sign in to our community to add your comments.

PaintSquare
SSPC 2014 Product Demos

Watch product demos by SSPC 2014 exhibitors. Check them out now!


Atlantic Design, Inc.
GOING PLACES YOU ONLY DREAM ABOUT!

We custom design.
We sell new & used.
We upgrade.
We retrofit.
We rent.
What are your equipment needs?
Cleverly simple. Clearly ADI. 866.Call.ADI


Novatek Corporation
Dustless Coatings Removal

Strip it, clean it, and profile it,
all dust free! High production
rates and Blast like finishes.
Comply with new lead
standards.


Industrial Vacuum Equipment Corp.
Hurricane Vacuums
& Dust Collectors

Vacuum and dust collector hose, filters and related accessories.
IndustrialVacuum.com


Axxiom Manufacturing
The Undisputed
Industry Leader.

Proven Innovation. Job Performance. Industry Training. Workplace Safety. Only Schmidt® abrasive blast equipment by Axxiom Manufacturing delivers it all!


Abrasives Inc.
Check our Prices for Blast Abrasives

Faced with higher abrasive costs? We invite you to call & check our rates on Black Magic® coal slag and other quality blast materials. Abrasives Inc. 800-584-7524


Sherwin-Williams
Heat-FLex® Hi-Temp 1200

Improved Corrosion
Resistance
Enhanced Durability
Faster Shop Throughput

 
 
 
Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker JPCL Europe

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
 

© Copyright 2000-2014, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com