Carlisle Cos. said Wednesday that it will pay $590 million to buy a Graco Inc. business unit that makes spray guns used to stain, paint or coat cars, wood surfaces and airplanes.
Carlisle, which makes products used by the construction, mining, energy and other industries, said buying the liquid finishing business will help it create a new business segment. The business has about $275 million in annual sales, Carlisle said. Graco, which makes sprays and pumps for the construction and manufacturing industries, had to sell the business to meet rules set by the Federal Trade Commission after it purchased it with other businesses from Illinois Tool Works Inc. in 2012.
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The deal is expected to close in the first quarter of next year.
Shares of Carlisle, based in Charlotte, North Carolina, rose $1.39, or 1.9 percent, to $76.23. Shares of Minneapolis-based Graco rose 38 cents to $70.45.