Cohesant Technologies soars on subsidiary sale and merger
Cohesant Technologies (Nasdaq: COHT) shares are skyrocketing after the company announced that Graco, Inc. (NYSE: GGG) is buying GlasCraft, Inc. from Cohesant for $35 million. GlasCraft makes equipment that dispenses coating, foam and composite materials.
“GlasCraft is a well-respected company we have been interested in acquiring for several years. The company has approximately 70 employees and annual sales of approximately $18 million,” Graco CEO Patrick J. McHale said in a statement. “The company is recognized for its presence in the global composites market as well as the polyurethane foam and polyurea coatings markets.”
The acquisition is expected to be completed during the first three months of 2008.
The transaction involves Graco merging with Cohesant Technologies, with all operations except GlasCraft being spun off prior to the merger, spokesman Mark Sheahan said.
Under the terms of the deal, Graco will merge all operations, expect GlasCraft, with Cohesant. The deal will include spinning off Cohesant’s CIPAR division.
In morning trading, COHT shares are soaring 54.11%, or $3.16, at $9. Over the last 52 weeks, shares have ranged from $5.97 to $10.50.
