FTC Orders Graco To Divest Liquid Finishing Business Assets

(RTTNews) - Graco Inc. (GGG) said Monday that it has received notice from the United States Federal Trade Commission requiring the company to divest the Liquid Finishing business assets that were acquired in a larger deal from Illinois Tool Works (ITW) on April 2, 2012.

The FTC's final Decision and Order requires Graco to complete the sale process in no more than 180 days.

The Liquid Finishing business assets that Graco is required to divest include those involved in the development, manufacture and sale of Binks® spray finishing equipment, DeVilbiss® spray guns and accessories, Ransburg® electrostatic equipment and accessories, and BGK curing technology. The 2012 acquisition from ITW also included Gema, a global leader in powder coating technology, which passed review by the FTC and is now part of Graco.

Graco will continue to hold the Liquid Finishing business separate from its other businesses and maintain them as viable and competitive until a sale process is complete.

In 2013, the Liquid Finishing business generated unadjusted sales of $279 million. Graco's cost investment in the business is $422 million.