MINNEAPOLIS (AP) -- Spray maker Graco Inc. said Thursday that it is "disappointed" that the Federal Trade Commission aims to order it to sell most of the finishing businesses it bought from Illinois Tool Works Inc. in April.
Graco said the FTC wants Graco to sell all the liquid finishing operations it bought from ITW. That includes the Binks spray finishing, DeVilbiss spray guns, Ransburg electrostatic equipment and BGK Curing divisions.
Graco bought those businesses and ITW's Gema powder coating unit for $650 million in a deal that closed April 2. Graco said the FTC could revise its proposed order during a public comment period over the next 30 days.
If the agency sticks with its current stance, Graco will have 180 days to sell the business.
The FTC has said since last year that the transaction violated antitrust laws, but it allowed Graco to complete the purchase while it investigated.
Shares of Graco sank $2.90, or 5.7 percent, to end regular trading Thursday at $48.17 and gave up another penny after hours.
