Graco Inc. Closes Acquisition of Valco Melton

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Acquisition expands Graco's capabilities and global reach in precision adhesive application and quality assurance technologies

MINNEAPOLIS--(BUSINESS WIRE)-- Graco Inc. (NYSE: GGG), a global leader in fluid and powder handling technologies, today announced it has completed its acquisition of Valco Melton, a global provider of adhesive application and quality assurance systems, for $447 million in cash. When adjusted for the present value of expected tax benefits of approximately $40 million, the net transaction value represents approximately 14x 2025 adjusted EBITDA and approximately 10x 2026 estimated full-year, synergy-adjusted EBITDA.

Valco Melton designs, manufactures and supports industrial systems that precisely apply adhesives and verify quality during production. Its solutions are used primarily in packaging and other industrial manufacturing applications where quality, reliability and consistent performance are critical.

"Today marks an exciting milestone as we officially welcome Valco Melton to Graco," said Mark Sheahan, President and CEO of Graco. "Valco Melton expands our capabilities in precision adhesive dispensing and quality assurance technologies while strengthening our ability to help manufacturers improve productivity, product quality and operational efficiency. Together, we are well positioned to deliver greater value to customers around the world."

Valco Melton has approximately 650 employees, serves customers in more than 80 countries and generated approximately $145 million in revenue in 2025.

“With the acquisition complete, we are focused on realizing the opportunities created by combining Valco Melton's leading adhesive dispensing and inspection technologies with Graco's global scale and manufacturing expertise,” said Sheahan. “We look forward to building on their legacy with a shared commitment to innovation, quality and customer success.”

Valco Melton will become part of Graco's Industrial segment. This acquisition reinforces Graco's disciplined approach to capital allocation and M&A, driving growth by expanding its participation in attractive end markets, enhancing and leveraging its global capabilities, and adding technologies that support both original equipment and aftermarket demand.

About Graco

Graco Inc. supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com.

Cautionary Statement Regarding Forward-Looking Statements

The Company desires to take advantage of the “safe harbor” provisions regarding forward-looking statements of the Private Securities Litigation Reform Act of 1995 and is filing this Cautionary Statement in order to do so. The Company’s statements about the expected impacts of the closing of the acquisition, including with respect to existing presence, benefits to customers, growth and expansion are forward-looking statements. The expected impacts of the closing of the acquisition could differ due to any event, change or other circumstance that prevents the parties from achieving these results in a timely fashion or at all.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260831977772/en/

FOR FURTHER INFORMATION:
Investors: John Bower, 612-623-6770
John_M_Bower@graco.com

Media: Kirstie Foster, 612-623-6249
Kirstie_l_foster@graco.com

Source: Graco Inc.

Key Terms

present value financial

Present value is the current worth of a future stream of cash flows after adjusting for the time value of money, calculated by discounting each future payment back to today using a chosen discount rate. It matters to investors because it lets you compare amounts payable or receivable at different times on a common, today-based scale — like deciding whether one apple now is worth more or less than several apples later.

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adjusted EBITDA financial

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

synergy-adjusted EBITDA financial

An adjusted EBITDA figure that adds or subtracts the expected cost savings, revenue gains or one-time integration costs tied to a business combination or reorganization. It is a non-GAAP, forward-looking measure that shows what operating cash profit would look like after projected synergies are realized, like showing a merged company's earnings with promised efficiency gains built in. Investors care because it changes headline profitability and valuation comparisons by reflecting management’s assumptions about future combined performance.

aftermarket demand technical

Demand for a security that appears in the market after the initial sale or offering, including buying activity in the secondary market or during after-hours trading. It signals how much appetite buyers have for the shares once the initial allocation is done, like shoppers continuing to queue for a popular product after the first batch sells out, and matters because it affects price discovery, liquidity, and how the market values the company beyond the offering price.