Graco Completes ITW Acquisition - Analyst Blog
April 03 2012 - 10:45AM
Zacks
As announced before, Graco
Inc. (GGG) completed acquiring the finishing businesses of
Illinois Tool Works Inc. (ITW) on Monday. Though
the deal was closed at $650 million, Graco awaits a final
settlement review from the U.S. Federal Trade Commission (FTC).
As declared at the time of
announcing the acquisition, Graco added a few equipment and
technologies to its existing product range from this acquisition.
This included Germa for its Powder Finishing along with Binks
spray, DeVilbiss spray guns, Ransburg electrostatic devices and BGK
curing technologies with its various accessories for its Industrial
Liquid Finishing,
On March 27, 2012, the FTC allowed
the acquisition to close on the condition that the Liquid Finishing
businesses do not conflate with Graco’s Powder Finishing and other
businesses. Graco has complied with the FTC by limiting the
conflation of the Liquid Finishing businesses of ITW, thereby
making a provision for it to remain separately functional under the
supervision of a trustee accountable to the FTC.
Whilst the company is taking
proactive measures to ameliorate its revenues and profitability, it
should take note that its competitors are also not sitting idle.
Robbins & Myers, Inc. (RBN) last week reported
its second quarter financial results of fiscal 2012, whereby
revenues rose approximately 39% annually to reach a whopping $256
million. The company should remain wary of other big players too
such as Barnes Group, Inc. (B) and Dxp
Enterprises Inc. (DXPE) in the industry.
The current Zacks Consensus
Estimates for Graco is$0.61 and $2.63 for the first quarter of 2012
and for fiscal 2012, respectively. The company currently retains a
Zacks #3 Rank, which translates into a short-term ‘Sell’ rating.
However, we maintain a long-term ‘Neutral’ recommendation on the
stock.
BARNES GRP (B): Free Stock Analysis Report
DXP ENTERPRISES (DXPE): Free Stock Analysis Report
GRACO INC (GGG): Free Stock Analysis Report
ILL TOOL WORKS (ITW): Free Stock Analysis Report
ROBBINS & MYERS (RBN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Graco (NYSE:GGG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Graco (NYSE:GGG)
Historical Stock Chart
From Jul 2023 to Jul 2024