Illinois Tool Works has entered into a definitive agreement to sell its finishing group of businesses to Graco Inc. in a $650 million cash transaction. The sale, subject to customary regulatory reviews, is not expected to be finalized before June.
ITW’s finishing equipment businesses consist of paint spray systems and technologies for a variety of industrial end markets and applications around the world. Key businesses include Gema, Ransburg, DeVilbiss, BGK and Binks, major players in wet industrial finishing, powder paint and drying technologies. The revenues of the finishing businesses totaled $305 million in 2010.
“ITW’s finishing businesses offer a variety of premium worldwide brands that collectively represent a very valuable asset,” said David Speer, chairman and CEO of ITW. “We believe the sale of these assets to an industry leader like Graco presents our finishing businesses with an excellent opportunity to optimize their long-term growth and profitability.”
Founded in 1926, Minneapolis, Minn.-based Graco is a leader in fluid handling systems and components, with revenues totaling $744 million in 2010.
Based in Glenview, Ill., ITW’s revenues totaled $15.9 billion in 2010.