The acquisition is a bolt-on that expands Graco's addressable market in precision adhesive dispensing. Monitor the next quarterly report for initial revenue contribution from Valco Melton and any updates on synergy realization. The all-cash deal preserves balance sheet flexibility.
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Executive Summary
Graco Inc. announced the completion of its previously announced acquisition of Valco Melton for $447 million in cash. The deal, which expands Graco's capabilities in precision adhesive application and quality assurance systems, was funded entirely with cash. Valco Melton generated approximately $145 million in revenue in 2025 and will be integrated into Graco's Industrial segment. The net transaction value represents approximately 14x 2025 adjusted EBITDA and approximately 10x 2026 estimated synergy-adjusted EBITDA, after adjusting for ~$40 million in expected tax benefits.
Key Facts
- Graco completed the acquisition of Valco Melton for $447 million in cash.
- Valco Melton generated approximately $145 million in revenue in 2025.
- The net transaction value is approximately 14x 2025 adjusted EBITDA and 10x 2026 estimated synergy-adjusted EBITDA.
- The acquisition is expected to provide approximately $40 million in present value of tax benefits.
- Valco Melton has approximately 650 employees and serves customers in more than 80 countries.
- The acquisition was previously announced on May 21, 2026.
Financial Impact
$447 million cash acquisition with ~$40 million in expected tax benefits; target generated ~$145 million in 2025 revenue.
Risk Factors
- Integration risk: combining Valco Melton's operations and culture with Graco's.
- Execution risk: achieving the projected 10x 2026 synergy-adjusted EBITDA multiple.
- Potential for higher leverage if Graco takes on debt to replenish cash used for the acquisition.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-377613 |
| Document: d100947dex991.htm | 0001193125-26-377613 |
| Document: 0001193125-26-377613-index-headers.html | 0001193125-26-377613 |
| Document: 0001193125-26-377613-index.html | 0001193125-26-377613 |
| Document: 0001193125-26-377613.txt | 0001193125-26-377613 |
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% | $78.00 (+1.91%) |
Sep 1, 2026 4w ago | 8-K | $76.82 $76.41 | ▼ −0.53% | ▼ −0.61% | $78.00 (+1.54%) |
Jun 15, 2026 15w ago | 8-K | $75.15 $75.51 | ▲ +0.48% | ▲ +1.86% | $78.00 (+3.79%) |
May 21, 2026 19w ago | 8-K | $75.29 $75.32 | ▲ +0.04% | ▼ −1.81% | $78.00 (+3.60%) |
May 5, 2026 21w ago | 8-K | $78.42 $76.97 | ▼ −1.85% | ▼ −3.83% | $78.00 (−0.53%) |
Mar 11, 2026 29w ago | DEFA14A | $87.64 $84.41 | ▼ −3.69% | ▼ −1.50% | $78.00 (−11.00%) |
US Market Status
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