MILWAUKEE - Brady Corporation (NYSE: BRC), a global leader in industrial and safety printing systems and solutions, is in exclusive negotiations to purchase Gravotech Holding, a French company specializing in marking and engraving technology, for about EUR 123 million (USD 133 million).
The acquisition is anticipated to be finalized by the end of Brady's fiscal year on July 31, 2024, pending regulatory approvals and other customary closing conditions.
Gravotech, which reported sales of EUR 112 million (USD 121 million) for the year ending December 31, 2023, brings a portfolio of laser, mechanical engraving, scribing, and dot peen technology to Brady's existing product identification offerings. Founded in 1938 and headquartered in Lyon, France, Gravotech has a significant global footprint, with operations across the U.S., Latin America, Europe, and Asia-Pacific.
Brady's President and CEO, Russell R. Shaller, highlighted the strategic fit of the acquisition, stating that the addition of Gravotech's direct part marking and engraving capabilities complements Brady's current product lineup. The company aims to expand Gravotech's market reach through its established global presence.
The transaction is expected to be funded through Brady's available cash and borrowings under its existing credit agreement. While the acquisition is not projected to have a material impact on Brady's earnings per diluted share for the fiscal year ending July 31, 2024, excluding acquisition-related expenses, it marks a significant expansion of Brady's product and service offerings.
Brady, with a history dating back to 1914, serves a diverse customer base in various industries, including electronics, telecommunications, manufacturing, electrical, construction, medical, and aerospace. As of July 31, 2023, the company employed approximately 5,600 people worldwide and reported fiscal 2023 sales of around $1.33 billion.
This planned acquisition is subject to the completion of the information-consultation processes under French law, as well as the necessary regulatory clearances. The information provided here is based on a press release statement from Brady Corporation.
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