Graco Inc., Illinois Tool Works Inc., and ITW Finishing LLC, In the Matter of

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Docket No.9350 In the Matter of Graco Inc., a corporation, Illinois Tool Works Inc., a corporation, and ITW Finishing LLC, a limited liability company
FTC Matter/File Number:

111 0169

Docket Number:

9350

Enforcement Type:

Federal Injunctions

Part III Administrative Complaint

Case Summary

On 12/15/2011, the FTC challenged Graco Inc.'s proposed $650 million acquisition of ITW Finishing LLC from Illinois Tool Works Inc., alleging that it would harm competition in the market for equipment used to apply paints and other liquid finishes to a variety of manufactured goods, such as cars, wood cabinets, and major appliances. In March 2012, the FTC issued an order requiring Graco Inc. to hold separate the worldwide liquid finishing equipment businesses of Illinois Tool Works Inc. and ITW Finishing LLC, while allowing Graco to complete its proposed $650 million acquisition of all of ITW's finishing equipment businesses. The Commission also withdrew its court challenge to the deal. On 5/31/2012, the FTC required Graco Inc., a leader in the worldwide market for key industrial finishing equipment, to sell the worldwide liquid finishing business of Illinois Tool Works Inc. and ITW Finishing LLC under a proposed order, as part of a settlement resolving charges that its $650 million acquisition of several ITW businesses would have been anticompetitive and led to higher prices and reduced innovation for the North American manufacturers who rely on this equipment.

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