Graco Completes $447 Million Acquisition of Valco Melton

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2▲1 ▼0Impact / 5
Summary · why it matters

Graco Inc. has completed its cash purchase of Valco Melton for $447 million, a deal that strengthens its product offerings in precision adhesive dispensing and quality assurance. The net transaction is valued at about 14 times Valco Melton's adjusted EBITDA for 2025 and 10 times its projected 2026 EBITDA, including synergies, after accounting for roughly $40 million in anticipated tax benefits. Valco Melton, headquartered in Cincinnati, Ohio, reported revenues of $145 million in 2025, with more than half coming from aftermarket products, and serves industries such as packaging, folding carton, envelope, nonwovens, print finishing, textiles, and automotive. The acquired company will be added to Graco's Industrial segment, and the acquisition follows Graco's recent purchases of Red Devil Equipment Company in November 2025 and Color Service S.r.l. in July 2025. Graco currently holds a Zacks Rank of 3, and its shares have gained 4.7% over the past three months, compared with the industry's 2.6% growth.

Impact on assets 4

Industrials▲ · 4 stocks
Graco Inc
GGG
▲ PositiveCapitalrelevance

Graco completed its $447 million cash acquisition of Valco Melton, expanding its Industrial segment offerings.

Off-coverage companies 3

Valco MeltonPrivate▲ Positive
Capitalrelevance

Valco Melton is being acquired by Graco for $447 million, providing an exit for its shareholders.

Color Service S.r.l.Private± Mixed
relevance

Red Devil Equipment Company (Radia)Private± Mixed
relevance

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