Charlotte manufacturer Carlisle Cos. said Wednesday that the Federal Trade Commission has approved its purchase of the liquid-finishing business of Minnesota-based Graco.
Carlisle had announced its intent to buy Graco’s liquid-finishing business, which has annual sales of $275 million and which sells spray guns and other equipment for industrial applications of paints and coatings, in October. Graco had acquired the business in 2012 from competitor Illinois Tool Works for $650 million, and the FTC had originally blocked its sale to Carlisle for competitive reasons.
Carlisle’s all-cash, $590 million deal is expected to close by April 1, the company said in a statement.
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 the 2013 sale 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.
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The liquid finishing business will be included in a new segment called the Carlisle Fluid Technologies. The new segment is expected to be accretive for Carlisle within the first year, meaning it will add to the company’s earnings per share.
Carlisle has about 8,200 employees worldwide, including about 80 in its Charlotte office in Ballantyne.