Minneapolis, Minnesota -- Graco Inc.'s president and ceo Patrick McHale said 15 Dec that he was disappointed with the Federal Trade Commission's (FTC) decision to challenge Graco's proposed acquisition of the finishing businesses of Illinois Tool Works Inc.
"Graco strongly believes this transaction is pro-competitive and intends to vigorously fight for approval in court," said McHale, in a company statement.
"The liquid finishing industry is highly competitive with many serious, quality competitors in each product category," McHale continued.
He also noted Graco's proposal to the FTC that existing US Graco and ITW distributor practices would remain unchanged, "with distributors remaining non-exclusive and retaining the ability to distribute products from other manufacturers."
McHale continued, "This transaction will benefit both end users and our distributor partners as we continue to invest in new products, customer service and manufacturing efficiencies. It is unfortunate that the FTC has taken action which we believe, if successful, will hurt manufacturing and jobs in this country."
Graco made the $650-million cash offer in mid 2011 for the ITW unit, which makes equipment for industrial liquid finishing, powder coating and automotive refinishing, worldwide. Graco's operations include supply of spray equipment for polyurethane foam and polyurea coatings.
Graco said at the time of the original offer that key attributes of the ITW businesses include: 2010 revenues of $305 million, 40 percent in the Americas; significant operations in the US, Switzerland, UK, Japan, Brazil and Mexico; leading equipment technologies and brands, such as Gema powder finishing equipment, Binks industrial pumps, DeVilbiss auto refinish guns, Ransburg electrostatic guns, and BGK curing technology; about 900 employees; and global manufacturing capacity.