Indianapolis, Indiana -- Graco Inc. has signed an agreement to purchase GlasCraft Inc. -- a subsidiary of Cohesant Technologies Inc. -- for $35 million.
Graco's president and ceo Patrick McHale said in a 3 Dec statement that the company have been interested in acquiring GlasCraft, which has annual sales of $18 million, for "several years."
GlasCraft manufactures and sells solutions for both the open and closed-mould segments of the composites manufacturing industry. It also designs and manufactures high performance dispense systems for the polyurethane foam and polyurea coatings industries.
Graco manufactures and markets systems and equipment to move, measure, control, dispense, and spray fluid materials, and a major business in polyurethane dispensing machinery.
"This transaction is a classic win-win scenario," said Morris Wheeler, president and ceo of Cohesant, in a statement addressed to the company's partners.
"We are very excited about the opportunities this acquisition presents, including expanded access to new technologies, entry into new markets, and leverage of the combined strengths and experience base of both companies," he added.
The acquisition is awaiting approval from Cohesant's shareholders, and is expected to close in the first quarter of 2008.
Wheeler said that over the coming months, the management teams of Graco and GlasCraft will begin working together to develop long term strategies and will focus on serving customers, distributors, employees, and shareholders needs.
As part of the transaction, Cohesant will spin-off its infrastructure protection and renewal operations, which have recently been consolidated under the umbrella of CIPAR, and the resulting company will operate as Cohesant Inc. (ss)