Graco Announces Regular Quarterly Dividend and Adopts Replacement Share Rights Plan

The Board of Directors of Graco Inc. (NYSE: GGG) has declared a regular quarterly dividend of 20 cents per common share, payable on May 5, 2010, to shareholders of record at the close of business on April 19, 2010. The Company has approximately 60.1 million shares outstanding.

The Board of Directors also approved today a share rights plan that will replace an existing plan when it expires on March 29, 2010. Like the existing plan, the new share rights plan is intended to increase the likelihood that Graco shareholders will realize the long-term value of their investment. The new share rights plan was not adopted in response to any takeover approach.

Under the plan, the Board of Directors has declared a dividend distribution of one preferred share purchase right on each outstanding share of Graco common stock held by shareholders of record as of the close of business on March 29, 2010. The rights will expire on March 29, 2020.

Each right will entitle Graco shareholders to buy one one-thousandth of a share of a series of preferred stock at an exercise price of $150 (subject to adjustment). Under both the expiring plan and the new plan, the rights will generally become exercisable only after any person or group acquires beneficial ownership of 15 percent or more of the Company’s common stock. In that event, each right will generally entitle its holder (other than the 15-percent shareholder and related persons) to purchase, at the right’s exercise price, shares of the Company’s common stock having a value of twice the right’s exercise price.

In addition, if Graco is acquired in a merger or other business-combination transaction, or sells 50 percent or more of its assets or earnings power, each right will generally entitle its holder to purchase, at the right’s exercise price, common shares of the acquiring company having a market value of twice the right’s exercise price.

At the option of the Board of Directors, the Company may redeem the rights at $.001 per right (subject to adjustment) at any time before a person or group becomes the beneficial owner of at least 15 percent of the Company’s common stock.

Further details of the new share rights plan will be outlined in a letter to be mailed to all Graco shareholders of record as of the close of business on March 29, 2010.

Graco Inc. supplies technology and expertise for the management of fluids in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com.

Graco (NYSE:GGG)
Historical Stock Chart
From Jun 2024 to Jul 2024