A PYMNTS Company

Graco to divest liquid finishing businesses for ITW acquisition

 |  May 31, 2012

The Federal Trade Commission has voted to accept Graco’s consent agreement concerning its acquisition of several Illinois Tool Works (ITW) businesses. The FTC was concerned that the $650 million acquisition would lead to substantial anti-competitive effects in the liquid finishing equipment market: Graco and ITW are close competitors, and the deal may have reduced or eliminated distributor discounts and incentives to innovate. The combined entity would have a dominant share of North American sales of industrial liquid finishing equipment. Moreover, smaller rivals would have difficulty competing with Graco and ITW’s distribution and brand acceptance.

The settlement calls for Graco divesting its liquid finishing business assets. A March 2012 order to hold the assets separate from Graco’s other businesses remains in effect.

Full content: FTC Press Release


Related contentIllinois Tool Works v. Independent Ink (Josh Wright, George Mason University School of Law)


Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.