Graco To Sell Liquid Finishing Business Assets To Carlisle For $590 Mln

(RTTNews) - Graco Inc. (GGG) announced that it has signed a definitive agreement to sell the Liquid Finishing business assets that were purchased as part of Graco's acquisition of the Finishing Brands business from Illinois Tool Works or ITW on April 2, 2012.

The company said it expects the $590 million cash transaction with Carlisle Companies Inc. (CSL) to close no later than the first quarter of 2015. The divestiture is expected to be in compliance with the final Decision and Order that the United States Federal Trade Commission or FTC approved on Monday, October 6, 2014, which requires the company to complete a sale of the Liquid Finishing business assets within 180 days of the Decision and Order.

The Liquid Finishing business assets included in the sale to Carlisle are 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, all of which Graco is required to divest under the Decision and Order.

Graco said it will continue to hold the Liquid Finishing business separate from its other businesses until a sale process is complete.