PaintSquare.com
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

Advertisement

Armakleen Company, The


Coatings Industry News

Main News Page


Series of Deals Fattens Graco’s Reach

Wednesday, January 7, 2015

Comment | More

Spray-equipment manufacturer Graco Inc. is bulking up and branching out, spending $185 million in cash for four companies that will expand its geographical and industry footprint.

The Minneapolis, MN-based company just announced the $160 million acquisition of High Pressure Equipment Company (HiP) in Erie, PA, and the purchase of Kamas, UT-based White Knight Fluid Handling for an unspecified amount.

In addition, the company closed in December on the purchase of Brazil-based Multimaq-Pistolas e Equipamentos Para Pintura Ltd., a manufacturer and distributor of finishing products for the metal, leather and wood industries.

Graco EcoQuip
Photos: Graco Inc.

Graco broke into a new market with its acquisition of EcoQuip in 2013. Now, the company is spending $185 million in cash to acquire four companies that manufacture UHP equipment, fluid management and pumping solutions, wet abrasive equipment and finishing products.

It also acquired Ontario-based GeoBlaster Equipment Service and Sales Inc., a manufacturer of wet abrasive equipment for coating removal and surface preparation—its second abrasives company purchase in a year.

The combined cash purchase price for the four new acquisitions is about $185 million, Graco said.

Those transactions followed another major acquisition earlier in the fall.

Aggregate sales and EBITDA of the four new businesses in the most recent 12-month period were about $50 million and $17 million, respectively, according to Graco.

Expanding & Diversifying

"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," Patrick J. McHale, Graco's president and CEO, said in a statement.

Indeed, the company has been expanding past its spray equipment roots and core business, starting with the acquisition of Chesapeake, VA-based abrasive-blasting equipment manufacturer EcoQuip Inc. in December 2013.

Graco also completed the acquisition of UK-based Alco Valves, a manufacturer of high-pressure valves used in oil and gas and other industrial processes, early in the fourth quarter of 2014. The cash transaction closed for £72 million ($109.9 million USD).

Adding to UHP

HiP designs and manufactures valves, fittings and other flow control equipment for ultra-high-pressure environments, from 10,000 to 150,000 psi.

Graco is spending $160 million on Erie, PA-based High Pressure Equipment Company, which manufactures equipment for UHP environments, including the oil and gas industry.

Its products are used in numerous industrial applications, including infrastructure in the oil and natural gas industry and the waterjet cutting and cleaning industry, as well as industrial research programs for universities and corporations.

The company also maintains a production base in the UK. 

The acquisition of HiP is subject to customary regulatory review, and Graco expects the transaction to be completed in the first quarter of 2015. The acquisition includes "favorable tax election" that is expected to save Graco about $1.5 million per year in cash taxes through 2029, the company said.

Pump Expansion

White Knight manufactures air-operated double-bellows pumps, air-operated double-diaphragm pumps, and metering pumps used to transport chemicals and slurries in the production of semiconductors, solar panels and other electronics. Additionally, the company offers fluid management solutions, including pumping solutions used in chemical applications.

Graco expects to complete the White Knight acquisition this month. The former owners will receive "additional consideration" if the business achieves certain growth targets.

   

Tagged categories: Abrasives; Acquisitions; Construction chemicals; Finance; Geo-Blaster; Spray equipment; UHP waterjetting

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
Graco Inc.
 
Graco EcoQuip 2: Experience the Difference
 
While others claim their equipment is the same, none of them compare to Graco’s EcoQuip 2™ Vapor Abrasive® blasting line. Visit graco.com/ecoquip to learn more.
 

 
RCG America
 
www.glassOx.com
 
Recycled crushed glass factory direct. Pallet to truckloads. Experience quality. Demand savings. Serving PA, MD, DE, NJ, NY, CT, RI, MA, MI, OH, IN, WV, KY.
 

 
Tarps manufacturing, Inc.
 
QUALITY MADE IN AMERICA —Available near you!
 
CLICK to get a behind-the-scenes look at how Tarps Manufacturing makes the highest-quality tarps right here in the USA — available nationwide.
 

 
SABRE Autonomous Solutions
 
Introducing the ALPHA1 Blasting Robot
 
Once installed and commissioned – simply
SCAN PLAN BLAST.
 

 
CHLOR*RID International Inc.
 
SOLUTIONS THAT WORK
 
Companies that invest in corrosion control use CHLOR RID products
  • Soluble salt removal liquid
  • Test kits to verify contamination levels
  • Surface passivation to hold the blast
INFO@CHLOR-RID.COM 800.422.3217
 

 
HoldTight Solutions Inc.
 
Full Surface Protection for Up to One Year
 
HT 365 is a preservation, single component, anti-corrosive coating, a water displacing agent, a lubricant, and a penetrating fluid. It creates an imperceptible thin-film coating that offers excellent salt contaminant and humidity protection. Contact your HoldTight® representative or visit Holdtight.com for more information.
 

 
NLB Corporation
 
NLB Sure Shroud: Greater Protection and Flexibility
 
NLB’s Sure Shroud’s lighter weight and flexibility reduces operator fatigue and offers unmatched protection against high pressure hose ruptures. 10k to 40k psi rated.
 

 
Modern Safety Techniques
 
Modern Safety Techniques
 
With our unique LTCat, we can help to provide clean, safe breathing air to your workers. Take a look at our Breathing Air Systems, we supply at least twice as much charcoal as our competitors! Modern
 

 
KTA-Tator, Inc. - Corporate Office
 
New KTA Pipeline Inspection Kit
 
• Defelsko standard memory body
• Positector FTS 0-250 mils, cabled dry film thickness probe
• NEW Positector Shore D hardness probe
• All essential inspection equipment!
Visit www.ktagage.com
 

 
Mitsubishi Gas Chemical America
 
Performance Amine 1,3-BAC
 
A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.
 

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
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 (Updated 5/24/2018)   |   Terms & Conditions   |   Support   |   Site Map   |   Search   |   Contact Us