Graco Responds to FTC Actions
December 15 2011 - 4:00PM
Business Wire
Graco Inc. (NYSE: GGG) was informed today that the
Federal Trade Commission (FTC) will file a complaint to challenge
Graco's proposed acquisition of the finishing businesses of
Illinois Tool Works Inc. (NYSE: ITW).
"I am disappointed with today's decision by the FTC. Graco
strongly believes this transaction is pro-competitive and intends
to vigorously fight for approval in court," said Patrick J. McHale,
Graco's President and CEO. "The liquid finishing industry is highly
competitive with many serious, quality competitors in each product
category. Graco has proposed to the FTC that existing U.S. Graco
and ITW distributor practices would remain unchanged, with
distributors remaining non-exclusive and retaining the ability to
distribute products from other manufacturers of their choice. We
are confident in our position and believe the facts of the case
warrant defending this matter in court."
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."
The proposed acquisition will provide leading and complementary
equipment technologies and brands to Graco, such as Gema® powder
finishing equipment, Binks® spray finishing equipment, DeVilbiss®
spray guns and accessories, Ransburg® electrostatic equipment and
accessories and BGK curing technology. The businesses have
manufacturing locations throughout the world, including the United
States, Switzerland, United Kingdom, Japan, Brazil and Mexico with
sales offices and distribution capabilities in several additional
countries.
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.
Minneapolis-based Graco serves customers around the world in the
manufacturing, processing, and construction and maintenance
industries. For additional information about Graco Inc., please
visit us at www.graco.com.
Cautionary Statement Regarding
Forward-Looking Statements
A forward-looking statement is any statement made in this
release that reflects the Company’s current thinking on the
acquisition of the finishing business from ITW, market trends and
the Company’s future financial performance at the time it is made.
All forecasts and projections are forward-looking statements. The
Company undertakes no obligation to update these statements in
light of new information or future events.
The Company desires to take advantage of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995
by making cautionary statements concerning any forward-looking
statements made by or on behalf of the Company. The Company cannot
give any assurance that the results forecasted in any
forward-looking statement will actually be achieved. Future results
could differ materially from those expressed, due to the impact of
changes in various factors. These risk factors include, but are not
limited to: whether and when the required regulatory approvals will
be obtained, whether and when the closing conditions will be
satisfied and whether and when the transaction will close,
completion of purchase price valuation for acquired assets, whether
and when the Company will be able to realize the expected financial
results and accretive effect of the transaction, how customers,
competitors, suppliers and employees will react to the transaction,
and economic changes in global markets. Please refer to
Item 1A of, and Exhibit 99 to, the Company’s Annual
Report on Form 10-K for fiscal year 2010 (and most recent Form
10-Q) for a more comprehensive discussion of other risk factors
that relate generally to the Company’s business and financial
condition. These reports are available on the Company’s website at
www.graco.com and the Securities and Exchange Commission’s website
at www.sec.gov.
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