Graco Inc. (NYSE: GGG) was informed today that the Federal Trade Commission (FTC) has filed for public comment a proposed order that will require Graco to sell the worldwide liquid finishing businesses that were acquired from Illinois Tool Works, Inc. (ITW) on April 2, 2012. If the proposed order is not revised after the thirty day public comment period, Graco will be required to sell the liquid finishing operations, including 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 recent acquisition from ITW included Gema®, a global leader in powder coating technology, which passed review by the FTC and will remain with Graco.
At the conclusion of the public comment period, the FTC will issue a final decision and order that will identify the products, businesses and/or assets that Graco must divest. Such divestiture must be completed within 180 days following the issuance of the final decision and order.
“We are disappointed with the filing of the proposed order by the FTC,” said Patrick J. McHale, Graco's President and Chief Executive Officer. “While we strongly believe that the settlement proposal put forth by Graco was more than sufficient to allay the FTC’s concerns about future competition in the marketplace, we will abide by the final decision and order when it is issued.”
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. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, 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 recent acquisition of the finishing business from ITW. 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.