Graco To Buy Pennsylvania-based High Pressure Equipment Company For $160 Mln

(RTTNews) - Graco Inc. (GGG) has agreed to acquire the stock of Pennsylvania-based High Pressure Equipment or HiP company for $160 million. The HiP acquisition is subject to customary regulatory review and Graco hopes to close the transaction in the first quarter of 2015. Further, Graco would acquire the Utah-based White Knight Fluid Handling business. This acquisition to be complete in early January.

Also, Graco closed on two other acquisitions in December 2014. The firm acquired the assets of Ontario, Canada-based GeoBlaster Equipment Sales & Services Inc., and Brazil-based Multimaq-Pistolas e Equipamentos Para Pintura Ltda. Aggregate sales and EBITDA of the four businesses in the most recent year were about $50 million and $17 million, respectively.

The combined cash purchase price to acquire the four businesses is around $185 million, with additional consideration to the former owners of White Knight Fluid Handling should the business achieve certain growth targets. 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.