Graco Acquires Four Companies
Graco Inc. has a burgeoning list of recent acquisitions, including today’s announcement that it had either agreed to or closed deals to buy four companies totaling $185 million.
The largest of the four deals announced by the Minneapolis-based industrial parts manufacturer is the $160 million purchase of Pennsylvania-based flow control equipment firm High Pressure Equipment (HiP), pending regulatory approval.
Though the HiP purchase is the largest recent acquisition, it is far from the only. As part of the same announcement, the company said it had agreed to buy Utah-based White Knight Fluid Handling. In December, the company closed deals on Canada-based GeoBlaster Equipment Sales & Services Inc. and Brazil-based Multimaq-Pistolas e Equipamentos Para Pintura Ltda.
HiP’s purchase includes tax savings of $1.5 million a year through 2029.
The recent acquisitions “support our strategic growth plans to expand into new markets and geographies, while diversifying our portfolio of precision products for critical applications,” Graco CEO Patrick McHale said in a statement.
Graco snapped up several companies in 2014, including QED Environmental Systems and EcoQuip last January and Alco Valves Group in October.
Earlier this year, the company had to sell off part of a 2012 acquisition of Illinois Tool Works as part of a Federal Trade Commission order. The FTC said the liquid finishing segment could not remain with Graco for competitive reasons.