Minneapolis-based manufacturer Graco Inc. has entered into an agreement to purchase the operations of the finishing businesses of Illinois Tool Works Inc. The ITW finishing businesses include manufacturers and distributors of equipment for architectural painting, industrial liquid finishing, powder coating and automotive refinishing.
Graco said key figures for ITW’s finishing businesses include the following:
-- 2010 revenues of global $305 million
-- Operations located in the U.S., Europe, Japan, South America and sales offices and distribution capabilities in several additional countries
-- Technologies and brands, such as Gema powder finishing equipment, Binks industrial pumping solutions, DeVilbiss auto-refinish guns and accessories, Ransburg electrostatic guns and accessories and BGK curing technology
-- Global manufacturing capabilities and capacity
Graco said it plans to finance the transaction through a new committed $450 million revolving credit facility and previously announced long-term debt of $300 million.
The transaction is scheduled to close in June at the earliest, pending regulatory reviews and other customary conditions, Graco said. Terms for the transaction are reported to be $650 million.