Graco (NYSE: GGG) to buy Valco Melton for $447 million in cash
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Graco Inc. has entered into a definitive agreement to acquire Valco Melton, a global provider of adhesive application and quality assurance systems, for $447 million in cash, including the present value of about $40 million in expected tax benefits, subject to customary adjustments.
The price represents roughly 14x Valco Melton’s full year 2025 EBITDA. Valco Melton generated about $145 million of revenue in 2025, has approximately 650 employees, and serves customers in more than 80 countries. Closing is expected in Graco’s fiscal third quarter, after satisfaction of closing conditions, and Valco Melton will join Graco’s Industrial division.
Positive
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Insights
Graco is making a sizable, strategically aligned acquisition in adhesives and inspection.
Graco agreed to acquire Valco Melton for $447 million in cash, including about $40 million of expected tax benefits. The deal values Valco at roughly 14% times its full year 2025 EBITDA, which is a meaningful multiple for an industrial asset with niche technology.
Valco Melton posted around $145 million of 2025 revenue and has about 650 employees across more than 80 countries, adding scale and reach in precision adhesive dispensing and quality assurance. Management describes the business as a strong strategic fit with Graco’s core fluid handling capabilities.
The transaction is expected to close in Graco’s fiscal third quarter, subject to closing conditions. Subsequent company filings and updates after the fiscal third quarter will clarify integration progress, realized tax benefits and the acquired business’s contribution to Graco’s Industrial division.
8-K Event Classification
2 items: 7.01, 9.01
2 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Acquisition price: $447 million cash
Expected tax benefits: $40 million
EBITDA multiple: 14x 2025 EBITDA
+4 more
7 metrics
Acquisition price
$447 million cash
Consideration for Valco Melton, including tax benefits, subject to adjustments
Expected tax benefits
$40 million
Present value of expected tax benefits included in purchase price
EBITDA multiple
14x 2025 EBITDA
Valuation multiple based on Valco Melton’s full year 2025 EBITDA
Valco Melton revenue
$145 million
Approximate full year 2025 revenue for Valco Melton
Valco Melton employees
650 employees
Approximate employee count at Valco Melton
Countries served
more than 80 countries
Valco Melton customer footprint
Expected closing timing
Fiscal third quarter
Closing expected in Graco’s fiscal third quarter, subject to conditions
Key Terms
definitive agreement, EBITDA, forward-looking statements, safe harbor, +1 more
5 terms
definitive agreement financial
"today announced it has entered into a definitive agreement to acquire Valco Melton"
A definitive agreement is a formal, legally binding document that outlines the final terms and conditions of a deal or transaction, such as a sale or partnership. It acts like a detailed contract that confirms all parties have agreed on the key details, making the deal official. For investors, it signals that the agreement is settled and moving toward completion, providing clarity and security about the transaction.
EBITDA financial
"This represents approximately 14x Valco Melton’s full year 2025 EBITDA."
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
forward-looking statements regulatory
"The information in the exhibit hereto contains “forward-looking statements” within the meaning of Section 27A"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
safe harbor regulatory
"The Company desires to take advantage of the “safe harbor” provisions regarding forward-looking statements"
Safe harbor is a rule that protects companies or individuals from legal trouble if they follow certain guidelines or procedures. It’s like having a safety net that allows them to act without fear of punishment, as long as they stick to the rules. This helps encourage honest behavior and clear standards in financial and legal activities.
Industrial division financial
"Valco Melton will become part of Graco’s Industrial division."
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 21, 2026
(Exact name of registrant as specified in charter)
| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
| Registrant’s telephone number, including area code | |||||
| Not Applicable | ||
| (Former name or former address if changed since last report.) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure.
On May 21, 2026, Graco Inc. (the “Company”) issued a press release announcing it had signed a definitive agreement to acquire to acquire Valco Cincinnati, Inc. doing business as Valco Melton, a global provider of adhesive application and quality assurance systems.
The full text of the press release, dated May 21, 2026, is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information in the exhibit hereto contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such statements are made based on the current beliefs and expectations of the Company’s management and are subject to certain risks and uncertainties. Actual results or events may differ from those anticipated by forward-looking statements. Please refer to the last paragraph of the attached press release for information concerning risks, uncertainties, and other factors that may affect future results.
The information furnished pursuant to Item 7.01 of this Current Report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall it be incorporated by reference into future filings by the Company under the Securities Act, or under the Exchange Act, unless the Company expressly sets forth in such future filing that such information is to be considered “filed” or incorporated by reference therein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated May 21, 2026.
104 Cover Page Interactive Data File (included within the Inline XBRL document).
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GRACO INC.
| Date: | May 21, 2026 | By: | /s/ Joseph James Humke______________________ | |||||||||||
| Joseph James Humke | ||||||||||||||
| Its: Executive Vice President, General Counsel and Corporate Secretary | ||||||||||||||
| Exhibit 99.1 | GRACO INC. |  | ||||||||||||
| P.O. Box 1441 | ||||||||||||||
 | Minneapolis, MN | |||||||||||||
| 55440-1441 | ||||||||||||||
| NYSE: GGG | ||||||||||||||
| FOR IMMEDIATE RELEASE: | FOR FURTHER INFORMATION: | ||||
| May 21, 2026 | Investors: John Bower, 612-623-6770 John_M_Bower@graco.com Media: Kirstie Foster, 612-623-6249 Kirstie_L_Foster@graco.com | ||||
Graco Inc. Enters into Definitive Agreement to Acquire Valco Melton, a Global Leader in Precision Adhesive Applications and Quality Assurance Systems
MINNEAPOLIS – May 21, 2026 – Graco Inc. (NYSE: GGG), a global leader in fluid and powder handling technologies, today announced it has entered into a definitive agreement to acquire Valco Melton, a global provider of adhesive application and quality assurance systems, for $447 million in cash, including the present value of approximately $40 million in expected tax benefits, subject to customary adjustments. This represents approximately 14x Valco Melton’s full year 2025 EBITDA. The transaction is expected to close in Graco’s fiscal third quarter following the satisfaction of closing conditions.
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.
“This acquisition is a strong strategic fit for Graco and a natural extension of our industrial portfolio,” said Mark Sheahan, President and CEO of Graco. “Valco Melton expands our capabilities in precision sealant and adhesive dispensing, which closely aligns with Graco’s core expertise in fluid handling, while adding complementary vision‑based quality assurance systems. These additions to our portfolio strengthen our ability to help manufacturers improve productivity, quality, and uptime across demanding production environments.”
Valco Melton has approximately 650 employees, serves customers in more than 80 countries, and generated approximately $145 million in revenue in 2025.
“Valco Melton’s global footprint, strong customer relationships, and history of innovation align closely with Graco’s operating model, and we look forward to partnering with their team to drive continued global organic growth,” said Sheahan.
The transaction supports Graco’s long-term strategy by expanding its presence in a growing market segment, enhancing its global reach, and adding capabilities that drive both original equipment and aftermarket demand. Valco Melton will become part of Graco’s Industrial division.
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.
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FAQ
What acquisition did Graco (GGG) announce in this 8-K filing?
Graco announced a definitive agreement to acquire Valco Melton, a global provider of adhesive application and quality assurance systems. The deal expands Graco’s presence in precision sealant, adhesive dispensing, and vision-based quality assurance within its Industrial division.
How much is Graco (GGG) paying to acquire Valco Melton?
Graco agreed to acquire Valco Melton for $447 million in cash, including the present value of approximately $40 million in expected tax benefits. The purchase price is subject to customary adjustments typically seen in acquisition transactions of this type.
What valuation multiple is Graco paying for Valco Melton’s earnings?
The transaction values Valco Melton at approximately 14x its full year 2025 EBITDA. This multiple reflects the company’s specialized adhesive application and quality assurance technologies, global customer base, and role in packaging and industrial manufacturing markets.
When is Graco’s acquisition of Valco Melton expected to close?
The acquisition is expected to close in Graco’s fiscal third quarter, after satisfaction of closing conditions. Timing will depend on completing customary closing steps outlined in the definitive agreement and any required regulatory or contractual approvals.
How large is Valco Melton based on 2025 results?
Valco Melton generated approximately $145 million in revenue in 2025 and employs about 650 people. It serves customers in more than 80 countries, primarily in packaging and industrial manufacturing applications where precise adhesive application and product quality are critical.
How will Valco Melton fit within Graco’s existing business?
Valco Melton will become part of Graco’s Industrial division. Graco’s management describes the acquisition as a strong strategic fit that extends capabilities in precision sealant and adhesive dispensing while adding complementary vision-based quality assurance systems for demanding production environments.