Carlisle Cos. to buy paint operation from Minneapolis company

Ballantyne-based manufacturer Carlisle Cos. said Wednesday that it plans to buy a business division from a Minneapolis company that has been ordered by the Federal Trade Commission to sell it over competitive concerns.

Under a deal that needs regulatory approval, Carlisle has agreed to pay $590 million in cash for Minneapolis-based Graco’s liquid-finishing business, which sells spray guns and other equipment for industrial applications of paints and coatings.

Graco plans to sell Carlisle the liquid-finishing businesses that it acquired in 2012 from competitor Illinois Tool Works for $650 million.

The FTC had filed a civil lawsuit to block that deal, arguing that it would hurt competition. The FTC withdrew its suit in 2012 but required Graco to hold the liquid-finishing business separate from its other businesses.

On Monday, the FTC approved a settlement with Graco that requires the company to sell the business within 180 days.

The sale to Carlisle is scheduled to occur no later than the first quarter of 2015.

The deal is expected to bring the number of business segments at Carlisle to five once again. Carlisle has been down to four segments since its sale last year of its underperforming transportation segment. Since then, the company has been looking for a manufacturer to purchase as it seeks to replace the sizable revenue the transportation segment generated.

Carlisle said the liquid-finishing business it will acquire has annual sales of about $275 million. It will operate under a segment Carlisle will call Carlisle Fluid Technologies.

It’s the latest acquisition for Carlisle, which last week announced the $195 million purchase of a Singapore company that provides components to the medical equipment industry.

Carlisle has about 8,200 employees worldwide, including roughly 80 in Charlotte.

Carlisle shares rose 5.6 percent Wednesday to $79.04.

This story was originally published October 8, 2014 at 1:22 PM with the headline "Carlisle Cos. to buy paint operation from Minneapolis company."