Graco Inc., the maker of fluid handling equipment and components, has agreed to buy the finishing businesses of Illinois Tool Works Inc. for $650 million in cash, the two companies said Thursday.
The acquisition would be the Minneapolis-based Graco's largest acquisition.
Illinois Tool Works, a Fortune 200 global industrial manufacturer based in Glenview, Ill., is selling businesses that make and distribute equipment for industrial liquid finishing, powder coating and automotive refinishing markets worldwide. The units have 900 employees and had $305 million in revenue last year.
The deal includes Gema powder finishing equipment, Binks industrial pumping solutions, DeVilbiss auto refinish guns and accessories, Ransburg electrostatic guns and accessories, and BGK curing technology.
Graco employs 2,150 and had $744 million revenue in 2010. The deal is expected to close in June. Graco shares closed at $43.27, down 33 cents. The announcement, after the market closed, sent shares up as much as $2.53 in after-market trading.
PATRICK KENNEDY
