Market Overview

Graco Responds to FTC Actions

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Graco Inc. (NYSE: GGG) was informed today that the Federal Trade Commission (FTC) will file a complaint to challenge Graco's proposed acquisition of the finishing businesses of Illinois Tool Works Inc. (NYSE: ITW).

"I am disappointed with today's decision by the FTC. Graco strongly believes this transaction is pro-competitive and intends to vigorously fight for approval in court," said Patrick J. McHale, Graco's President and CEO. "The liquid finishing industry is highly competitive with many serious, quality competitors in each product category. Graco has proposed to the FTC that existing U.S. Graco and ITW distributor practices would remain unchanged, with distributors remaining non-exclusive and retaining the ability to distribute products from other manufacturers of their choice. We are confident in our position and believe the facts of the case warrant defending this matter in court."

McHale continued, "This transaction will benefit both end users and our distributor partners as we continue to invest in new products, customer service and manufacturing efficiencies. It is unfortunate that the FTC has taken action which we believe, if successful, will hurt manufacturing and jobs in this country."

Posted-In: News M&A

 

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