Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Graco Inc. (GGG - Snapshot Report) announced that a proposed order regarding the sale of liquid finishing businesses has been filed for public comment by the Federal Trade Commission (FTC).

As per this order, Graco is required to sell the worldwide liquid finishing businesses that the company acquired from Illinois Tool Works (ITW - Analyst Report) on April 2, 2012.

Graco’s management was clearly disappointed with the order. The FTC will issue its final decision and order that will identify the products, businesses and/or assets that Graco must divest as and when the public comment period expires. The divestiture should be completed within 180 days following the issuance of the final decision and order.

As announced in April 2012, Graco completed its acquisition of the finishing businesses of Illinois Tool Works. Though the deal was closed at $650 million, Graco awaits a final settlement review from the U.S. FTC.

Meanwhile, 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 settled the issue 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.

Graco’s management is upbeat with the acquisition as it would largely proliferate its distribution scenario in the end markets along with powering the company with the long-term technological advancement.

We maintain our Neutral recommendation on Graco. In the short run, we have a Zacks #2 Rank on the stock, which translates into a short-term rating of Buy.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%
BNC BANCORP BNCN 17.33 +1.58%