MINNEAPOLIS (AP) — Graco Inc. said Thursday that it agreed to pay $650 million in cash for Illinois Tool Works Inc.'s finishing businesses.
Graco, which makes equipment to measure and dispense spray fluids used in industry, said the businesses it acquired make and distribute industrial liquid finishing, powder coating and auto refinishing.
The businesses had $305 million in revenue last year, and Graco said they will become part of its industrial unit.
Graco expects to pay for the acquisition with a new $450 million revolving credit line plus $300 million in existing long-term debt.
It expects the deal to close in June.
Graco shares climbed $2.28, or 5.3 percent, to $45.55 after hours Thursday after ending regular trading down 12 cents at $43.27.
Shares of Illinois Tool Works were flat after hours after finishing down 12 cents at $53.19.