Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Liquid finishing equipment manufacturer seeks FTC approval to divest assets, (Oct 30, 2014)
Organizations Mentioned:Carlisle Cos., Inc. | Graco Inc. | Graco, Inc.
By Greg Hammond, J.D.
Liquid finishing equipment manufacturer Graco Inc. has submitted an application to sell certain liquid finishing businesses and assets to Carlisle Companies Inc. The FTC has therefore announced a 30-day public comment period regarding the request (In the Matter of Graco Inc., File No. 111-0169, Dkt No. 9350).
According to the application, Graco is seeking the Commission’s approval to divest all property and assets relating to its liquid finishing business or the LFB powder finishing business that were purchased by Graco in its acquisition of Illinois Tool Works Inc. and ITW Finishing LLC, or that have been acquired by Graco after that acquisition, pursuant to agreements related to the settlement between 3M and ITW. The application to divest the liquid finishing business assets was made pursuant to an October 6 order settling charges that Graco’s acquisition of Illinois Tool Works Inc. and ITW Finishing Inc. was anticompetitive. Graco and ITW were already the two dominant manufacturers of liquid finishing equipment for industrial use in North America, the Commission’s complaint alleged. Further, after the merger, Graco would control well over half of the sales of all liquid finishing equipment for industrial use in North America.
In support of its application, Graco asserts that Carlisle is a 95 year old, publicly traded company that “is strategically well situated to be a long-term competitor in the liquid finishing market.” Further, Graco asserts that Carlisle has the financial ability to close the transaction and operate the business successfully; that Carlisle’s senior management has intimate knowledge of the liquid finishing industry; and that Carlisle intends to compete aggressively with Graco and others in the liquid finishing market and intends to operate the business for the long term.
Companies: Graco Inc.
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