Graco Closes $447M Cash Acquisition of Valco Melton
GRACO INC
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Filing Summary
Graco Inc. (NYSE: GGG) - Acquisition Update
Event: Closing of Valco Melton Acquisition Purchase Price: $447 Million in Cash Net Valuation: ~14x 2025 adjusted EBITDA / ~10x 2026E synergy-adjusted EBITDA Target Profile: Provider of adhesive application & quality assurance systems; generated ~$145M revenue in 2025 with ~650 employees. Segment Integration: Industrial segment
Comprehensive Analysis
Overview & Event Summary
On August 31, 2026, Graco Inc. (NYSE: GGG) completed its previously announced acquisition of Valco Cincinnati, Inc. (d/b/a Valco Melton) for $447 million in cash.
Key Transaction Highlights
- Target Overview: Valco Melton designs, manufactures, and supports adhesive application and quality assurance systems primarily for packaging and industrial manufacturing. It employs approximately 650 people, operates in over 80 countries, and generated roughly $145 million in revenue in 2025.
- Valuation Multiples: Adjusted for ~$40 million present value of expected tax benefits, the transaction represents approximately 14x 2025 adjusted EBITDA and ~10x estimated 2026 synergy-adjusted EBITDA.
- Segment Alignment: Valco Melton will be integrated into Graco's Industrial segment.
- Strategic Rationale: Expands Graco’s precision adhesive dispensing and inspection capabilities into attractive end markets, enhancing global scale and OEM/aftermarket offerings.
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