Graco Inc. (NYSE: GGG) was informed today that the Federal Trade Commission (FTC) will file a complaint to challenge Graco's proposed acquisition of the finishing businesses of Illinois Tool Works Inc. (NYSE: ITW).
"I am disappointed with today's decision by the FTC. Graco strongly believes this transaction is pro-competitive and intends to vigorously fight for approval in court," said Patrick J. McHale, Graco's President and CEO. "The liquid finishing industry is highly competitive with many serious, quality competitors in each product category. Graco has proposed to the FTC that existing U.S. Graco and ITW distributor practices would remain unchanged, with distributors remaining non-exclusive and retaining the ability to distribute products from other manufacturers of their choice. We are confident in our position and believe the facts of the case warrant defending this matter in court."
McHale continued, "This transaction will benefit both end users and our distributor partners as we continue to invest in new products, customer service and manufacturing efficiencies. It is unfortunate that the FTC has taken action which we believe, if successful, will hurt manufacturing and jobs in this country."
The proposed acquisition will provide leading and complementary equipment technologies and brands to Graco, such as Gema® powder finishing equipment, Binks® spray finishing equipment, DeVilbiss® spray guns and accessories, Ransburg® electrostatic equipment and accessories and BGK curing technology. The businesses have manufacturing locations throughout the world, including the United States, Switzerland, United Kingdom, Japan, Brazil and Mexico with sales offices and distribution capabilities in several additional countries.Graco Inc. supplies technology and expertise for the management of fluids in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid materials. Minneapolis-based Graco serves customers around the world in the manufacturing, processing, and construction and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com. Cautionary Statement Regarding Forward-Looking Statements A forward-looking statement is any statement made in this release that reflects the Company’s current thinking on the acquisition of the finishing business from ITW, market trends and the Company’s future financial performance at the time it is made. All forecasts and projections are forward-looking statements. The Company undertakes no obligation to update these statements in light of new information or future events.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV