Indianapolis-based Cohesant Technologies Inc. has agreed to be acquired by Graco Inc. of Minnesota for $35 million.
Graco said it intends to keep Cohesant's largest unit, GlasCraft, while spinning off the rest of the company. Among other products, GlasCraft makes equipment that sprays polyurethane foams.
Under the deal, shareholders of publicly traded Cohesant would receive from $9.05 per share to $9.55 per share in cash, a huge premium to where the stock had traded. Cohesant shares this morning rose to $8.94, up $3.10, or 53 percent.
Cohesant employs about 125 workers, including 70 in its GlassCraft unit.
Graco said it wanted GlasCraft to add composites manufacturing capabilities to the equipment it sells for spraying fluid materials.
The remainder of Cohesant will be renamed Cohesant Inc. The new Cohesant, which Graco anticipates being valued at $6.6 million, would be headquartered in Cleveland suburb of Beachwood and trade over the counter.
Cohesant officials were not immediately available for comment this morning.