AcquisitionsMay 21, 2026, 08:51 AM
Graco to Acquire Valco Melton for $447 Million
AI Summary
Graco Inc. 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. This price includes the present value of approximately $40 million in expected tax benefits, representing about 14x Valco Melton's full year 2025 EBITDA. The acquisition is a strategic fit, expanding Graco's capabilities in precision sealant and adhesive dispensing and enhancing its global reach. The transaction is anticipated to close in Graco's fiscal third quarter.
Key Highlights
- Graco Inc. to acquire Valco Melton for $447 million in cash.
- The acquisition price includes the present value of approximately $40 million in expected tax benefits.
- The transaction values Valco Melton at approximately 14x its full year 2025 EBITDA.
- Valco Melton generated approximately $145 million in revenue in 2025.
- Valco Melton has approximately 650 employees and serves customers in over 80 countries.
- The transaction is expected to close in Graco's fiscal third quarter.
- Valco Melton will become part of Graco's Industrial division.
Price Impact
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