Gives Carlisle a leading position in a new industry segment with
widely recognized premium brands in industrial liquid finishing
equipment and systems
CHARLOTTE, N.C.--(BUSINESS WIRE)--
Carlisle Companies Incorporated (NYSE:CSL) today announced the signing
of a definitive agreement to purchase from Graco Inc. (NYSE:GGG) and its
subsidiary Finishing Brands Holdings, Inc. their held separate liquid
finishing business assets (“Liquid Finishing Brands”) in a $590 million
cash transaction. The Liquid Finishing Brands business was acquired by
Graco in April, 2012, as part of its purchase of the liquid and powder
finishing businesses of Illinois Tool Works Inc. (NYSE: ITW). The Liquid
Finishing Brands business is currently being held separate from Graco’s
other businesses pursuant to an order of the U.S. Federal Trade
Commission (“FTC”), and Graco is required to sell the business within
180 days after entry of the FTC’s final divestiture order, which
occurred on October 6, 2014.
With annual sales of approximately $275 million, Liquid Finishing Brands
is a global manufacturer and supplier of liquid finishing equipment and
systems serving diverse end markets for paints and coatings, including
OE automotive, automotive refinishing, aerospace, agriculture,
construction, marine, rail and other industrial applications. The
business operates from 26 locations in seven countries with 50% of its
sales in the Americas and the remainder primarily in Asia and Europe.
Liquid Finishing Brands manufactures and sells products under the
well-known brand names of Binks®, DeVilbiss®,
Ransburg® and BGK.
The transaction is expected to be accretive to Carlisle in the first
year. Carlisle will include Liquid Finishing Brands in a new industry
segment named Carlisle Fluid Technologies. The acquisition is subject to
FTC and other regulatory approvals and certain other closing conditions.
David A. Roberts
, Carlisle’s Chairman and Chief Executive Officer, said,
“From our years at Graco, both
Chris Koch
and I are intimately familiar
with the markets in which Liquid Finishing Brands participates. When we
heard that Liquid Finishing Brands would be sold, we immediately pursued
the opportunity to acquire the business. We have made a solid commitment
to build a new Carlisle segment as a viable, global competitor to Graco
with Liquid Finishing Brands as the foundation and believe that it will
be a significant contributor to the success of Carlisle in the years to
come. The acquisition of Liquid Finishing Brands fits all of the
strategic criteria we established for reinvesting the proceeds from the
sale of our Transportation Products segment – namely, purchasing a
manufacturer selling high margin, engineered products with an
aftermarket tail into attractive global markets. We will work
cooperatively to achieve prompt regulatory approval so we can bring
Liquid Finishing Brands on board and continue growing this outstanding
business both organically and through acquisitions.”
J.P. Morgan is serving as exclusive financial advisor and Dorsey &
Whitney LLP is serving as legal counsel to Carlisle.
Conference Call and Webcast
A conference call to discuss the acquisition as well as Carlisle’s
recently announced acquisition of LHi Technology will be held at 10:00
a.m. Eastern today, October 8, 2014. The conference call will be webcast
live in a listen-only mode and may be assessed live by going to the
Investor Relations section of the Carlisle website at http://www.carlisle.com/investor-relations/events-and-webcats/default.aspx).
The replay of the webcast will be available on the Company’s website
shortly after the completion of the live call. A PowerPoint presentation
will accompany the call and can also be found on the Carlisle website.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally use words such as “expect,” “foresee,”
“anticipate,” “believe,” “project,” “should,” “estimate,” “will,”
“plans,” “forecast” and similar expressions, and reflect our
expectations concerning the future. The Company cannot give any
assurance that the results forecasted in any forward-looking statement
will actually be achieved. Future results could differ materially
from those expressed, due to the impact of changes in various factors
including, but not limited to the risk that the transaction may not be
consummated; the risk that FTC or other required regulatory approval is
not obtained or is subject to conditions that are not anticipated; risks
related to the Company’s integration of Liquid Finishing Brands, whether
and when the Company will be able to realize the expected financial
results and accretive effect of the transaction; and how customers,
competitors, suppliers and employees will react to the transaction. Actual
results may differ materially from the Company’s expectations due to
changes in global economic, business, competitive, market and regulatory
factors. More detailed information about these factors is
contained in the Company’s filings with the Securities and Exchange
Commission. The Company undertakes no duty to update
forward-looking statements.
About Carlisle Companies
Carlisle Companies Incorporated is a global diversified company that
designs, manufactures and markets a wide range of products that serve a
broad range of niche markets including commercial roofing, energy,
agriculture, mining, construction, aerospace and defense electronics,
foodservice, healthcare and sanitary maintenance. Through our group of
decentralized operating companies led by entrepreneurial management
teams we bring innovative product solutions to solve the challenges
facing our customers. Our worldwide team of employees, who generated
$2.9 billion in net sales in 2013, are focused on continuously improving
the value of the Carlisle brand by developing the best products,
ensuring the highest quality and providing unequaled customer service in
the many industries we serve. Learn more about Carlisle at www.carlisle.com.
Source: Carlisle Companies Incorporated