The acquisition is a bolt-on that expands Graco's precision dispensing capabilities into a growing packaging-adjacent market. At 14x EBITDA, the multiple is reasonable for a strategic industrial tuck-in. Monitor Q3 2026 close and any integration commentary on the next earnings call. The deal is all-cash, so near-term leverage will increase modestly.
Price Chart
Executive Summary
Graco Inc. announced a definitive agreement to acquire Valco Melton, a global provider of adhesive application and quality assurance systems, for $447 million in cash (including ~$40 million in present value of expected tax benefits). Valco Melton generated ~$145 million in revenue in 2025 and the purchase price represents ~14x its 2025 EBITDA. The deal is expected to close in Graco's fiscal Q3 2026.
Key Facts
- Acquisition price: $447 million in cash, including ~$40 million in present value of expected tax benefits
- Valco Melton 2025 revenue: ~$145 million
- Purchase price represents ~14x Valco Melton's full year 2025 EBITDA
- Valco Melton has ~650 employees and serves customers in more than 80 countries
- Transaction expected to close in Graco's fiscal third quarter 2026
- Valco Melton will become part of Graco's Industrial division
Financial Impact
$447 million cash acquisition of a company with ~$145 million annual revenue; ~14x EBITDA multiple
Risk Factors
- Integration risk — Valco Melton's 650 employees and global operations must be absorbed smoothly
- Execution risk — expected tax benefits of ~$40 million may not fully materialize
- Potential for modest leverage increase given all-cash consideration
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000042888-26-000110 |
| Exhibit: exhibit991052120268-k.htm | 0000042888-26-000110 |
| Document: 0000042888-26-000110-index-headers.html | 0000042888-26-000110 |
| Document: 0000042888-26-000110-index.html | 0000042888-26-000110 |
| Document: 0000042888-26-000110.txt | 0000042888-26-000110 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 18d ago | 8-K | $76.54 $76.59 | ▲ +0.07% | ▼ −0.04% | $78.28 (+2.27%) |
Sep 1, 2026 4w ago | 8-K | $76.82 $76.41 | ▼ −0.53% | ▼ −0.61% | $78.28 (+1.90%) |
Jun 15, 2026 15w ago | 8-K | $75.15 $75.51 | ▲ +0.48% | ▲ +1.86% | $78.28 (+4.17%) |
May 21, 2026 19w ago | 8-K | $75.29 $75.32 | ▲ +0.04% | ▼ −1.81% | $78.28 (+3.98%) |
May 5, 2026 21w ago | 8-K | $78.42 $76.97 | ▼ −1.85% | ▼ −3.83% | $78.28 (−0.17%) |
Mar 11, 2026 29w ago | DEFA14A | $87.64 $84.41 | ▼ −3.69% | ▼ −1.50% | $78.28 (−10.68%) |
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