Brady Corporation announced that it has entered into exclusive negotiations to buy Gravotech Holding for about €123 million (about $133 million). Brady expects to fund the deal with cash on hand and with borrowings on its existing credit agreement and expects to close the transaction by the end of its fiscal year ending July 31, 2024, subject to closing conditions.
With sales of €112 million (about $121 million) for the year ending December 31, 2023, Gravotech – with sales of EUR 112 million (about $121 million) – is a leader in specialized marking and engraving solutions intended for various industries and applications.
Gravotech was launched in 1938 and is based in Lyon, France. Gravotech is a leader in designing, manufacturing, and distributing innovative solutions for specialized engraving, marking, and cutting, offering laser, mechanical engraving, scribing, and dot peen capabilities. And the company manufactures machines and consumables and develops CAD software, and has an international presence in the U.S., Latin America, Europe and Asia-Pacific. Brady is a leader in industrial printers and adhesive materials, and the acquisition of Gravotech will add specialized direct part marking and engraving capabilities to Brady’s extensive product identification offering.
Brady expects this deal to be immaterial to earnings per diluted share for the remainder of the fiscal year ending July 31, 2024 (excluding acquisition-related costs).
KEY QUOTES:
“Gravotech is a highly regarded France-based company that is well-known globally for its innovative and differentiated solutions. The planned acquisition of Gravotech expands our product offering into precision direct part marking and engraving, with a product offering complementary to Brady’s. We would intend to grow Gravotech’s addressable market through Brady’s global footprint throughout Europe, Asia and the Americas.”
– Brady’s President and Chief Executive Officer Russell Shaller
