GRACO INC

Graco Inc. announced the appointment of Steven B. Hedlund to its Board of Directors, effective September 10, 2026. Mr. Hedlund, who is currently the President and CEO of Lincoln Electric Holdings, Inc., will also serve on Graco's Audit Committee and Management Organization and Compensation Committee. He brings extensive experience from the manufacturing sector and global strategy development, and will receive standard director compensation.

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.

Graco Inc. reported its first-quarter 2026 financial results, showing a modest increase in net sales and gross profit but a decline in net earnings and diluted earnings per share. Net sales grew 2.2% to $540.1 million, while gross profit increased to $280.6 million. However, operating earnings decreased by 4.3% to $137.8 million, and net earnings fell 4.5% to $118.5 million compared to the same period last year. Diluted EPS also saw a slight dip from $0.72 to $0.70.