M&A
confidence high
sentiment positive
materiality 0.90
Graco to acquire Valco Melton for $447M cash, expanding adhesive dispensing capabilities
GRACO INC
- Purchase price $447M cash including ~$40M present value of expected tax benefits; represents ~14x Valco Melton's 2025 EBITDA.
- Valco Melton generated ~$145M revenue in 2025 with ~650 employees serving customers in 80+ countries.
- Transaction expected to close in Graco's fiscal third quarter 2026, subject to customary conditions.
- Valco Melton to become part of Graco's Industrial division, adding precision adhesive dispensing and vision-based quality assurance systems.
- Deal supported by Graco's long-term growth strategy, expanding presence in packaging and industrial manufacturing markets.