Graco Inc. Entered into an Agreement to Acquire Valco Melton

Graco Inc. entered into a definitive agreement to acquire Valco Melton, a global provider of adhesive application and quality assurance systems, for $447 million in cash. The acquisition will include the present value of approximately $40 million in expected tax benefits, subject to customary adjustments. This is equivalent to approximately 14 times Valco Melton's EBITDA for the entire year of 2025. The transaction is anticipated to be finalised in the third quarter of Graco's fiscal year, contingent upon the fulfilment 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’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.

Source: Graco Inc.