Graco Inc. continues its acquisition spree and bought four (4) further companies for a combined cash purchase price of USD 185 million.
The company acquired GeoBlaster Equipment Sales & Services Inc. and Brazil-based Multimaq-Pistolas Equipamentos Para Pintura Ltda (Multimaq)o in December 2014. The company now agreed to acquire High Pressure Equipment (HiP) and White Knight Fluid Handling business.
- High Pressure Equipment, USA
valves, fittings, and other flow control equipment for the oil and natural gas industry for ultra-high pressure environments from 10,000 to 150,000 psi
- White Knight Fluid Handling, USA
air-operated double-bellows pumps, air-operated double-diaphragm pumps, and metering pumps used in the production of semiconductors, solar panels and LED flat panel displays
- GeoBlaster Equipment Sales & Services Inc., Canada
wet abrasive blasting equipment for coating removal and surface preparation
- Multimaq-Pistolas e Equipamentos Para Pintura Ltda, Brazil
manufacturer and distributor of spray coating equipment such as spray guns, pumps and accessories
According to the company, the acquisitions are a strategic move aimed to fuel its growth momentum by expanding its geographical presence in new markets as well as diversifying its product portfolio. In addition, the acquisition of HiP includes a favorable tax election that is expected to save Graco approximately $1.5 million per year in cash taxes through 2029.
Three years ago Graco acquired the finishing business of ITW (incl. Gema, Binks, Devilbiss and Ransburg) but was later urged by US regulators to sell the “liquid” part again.