Graco Inc. and U.S. Federal Trade Commission Reach Settlement on Spray Foam
MINNEAPOLIS -- April 18, 2013
Graco Inc. (NYSE:GGG) today announced it has reached a non-monetary settlement
agreement resolving a Federal Trade Commission (FTC) non-public investigation
of the Company’s business related to spray foam equipment used by contractors
doing business in the United States.
The settlement expressly states that Graco does not admit any violation of law
or that the facts alleged in the FTC’s complaint are true. Indeed, the Company
believes that the complaint contains inaccuracies with regard to both the law
and the facts, and relates to events which occurred many years ago.
While the Company believes it would prevail in a court of law, its spray foam
equipment business covered by the FTC’s decision and order accounted for less
than 5 percent of the Company’s consolidated net sales in the fourth quarter
of fiscal year 2012. Consequently, management has concluded that a settlement
enables Graco to put an end to the expense and distraction of protracted
litigation with the FTC. The Company believes that spray foam equipment
contractors rely on innovative Graco technologies and products in this niche
industry to rapidly evolve, enabling them to increase the share of spray foam
insulation in the broader insulation industry. The Company expects these
vibrant dynamics to continue in the future.
This agreement related to spray foam equipment is not associated with the
FTC’s ongoing review of Graco’s 2012 acquisition of the Finishing Brands,
which included powder and liquid finishing businesses from Illinois Tool
Graco Inc. supplies technology and expertise for the management of fluids and
coatings in both industrial and commercial applications. It designs,
manufactures and markets systems and equipment to move, measure, control,
dispense and spray fluid and coating materials. A recognized leader in its
specialties, Minneapolis-based Graco serves customers around the world in the
manufacturing, processing, construction, and maintenance industries. For
additional information about Graco Inc., please visit us at www.graco.com.
James A. Graner, CFO, 612-623-6635
Bryce Hallowell, 612-623-6679
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