Graco Acquires Valco Melton for $447M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2026
0mins
Graco entered into a definitive agreement to acquire Valco Melton, a global provider of adhesive application and quality assurance systems, for $447M in cash, including the present value of approximately $40M in expected tax benefits, subject to customary adjustments. This represents approximately 14x Valco Melton's full year 2025 EBITDA. The transaction is expected to close in Graco's fiscal third quarter following the satisfaction of closing conditions. Valco Melton designs, manufactures, and supports industrial systems that precisely apply adhesives and verify quality during production. Its solutions are used primarily in packaging and other industrial manufacturing applications where quality, reliability, and consistent performance are critical. Valco Melton has approximately 650 employees, serves customers in more than 80 countries, and generated approximately $145M in revenue in 2025. The transaction supports Graco's long-term strategy by expanding its presence in a growing market segment, enhancing its global reach, and adding capabilities that drive both original equipment and aftermarket demand. Valco Melton will become part of Graco's Industrial division.
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Analyst Views on GGG
Wall Street analysts forecast GGG stock price to rise
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 75.270
Low
89.00
Averages
93.50
High
98.00
Current: 75.270
Low
89.00
Averages
93.50
High
98.00
About GGG
Graco Inc. is a multinational manufacturing company. The Company supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. Its segments include Contractor, Industrial and Expansion Markets. The Contractor segment markets sprayers and equipment that apply paint to walls and other structures, texture to walls and ceilings, insulation to building walls and other items, highly viscous coatings to roofs, and markings on roads, parking lots, athletic fields and floors. The Industrial segment includes its industrial and powder divisions. The Industrial segment markets equipment and solutions for moving and applying paints, powder coatings, sealants, adhesives and other fluids. The Expansion Markets segment includes environmental, semiconductor, high-pressure valves and electric motors businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- HEICO's Dividend Increase: HEICO announced a semiannual cash dividend of $0.13 per share, an 8% increase from the previous $0.12, reflecting the company's strong performance in profitability and cash flow management.
- Graco's Quarterly Dividend: Graco's board declared a regular quarterly dividend of 29.5 cents per share, payable on August 5, 2026, further solidifying its stability and attractiveness in the market.
See More
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- Leadership Background: Hedlund has served as CEO of Lincoln Electric since January 2024 and held various strategic and business development roles at Fortune Brands, showcasing strong leadership and market expansion capabilities that can enhance Graco's value creation in international markets.
- Committee Roles: Within Graco's Board, Hedlund will serve on the Audit Committee and Management Organization and Compensation Committee, which will help improve the company's governance structure and management efficiency, further advancing its strategic objectives.
- Industry Impact: As a leader in fluid and coating management technology, Graco stands to benefit from Hedlund's expertise, enhancing its competitive position in manufacturing, processing, and construction sectors while supporting global business expansion.
See More
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- Quarterly Dividend Announcement: Graco Inc.'s Board of Directors has declared a quarterly dividend of $0.295 per common share, payable on August 5, 2026, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Shareholder Record Date: The record date for the dividend payment is set for July 20, 2026, ensuring that shareholders holding stock by this date will receive the dividend, thereby enhancing investor confidence.
- Total Shares Outstanding: Graco currently has approximately 162.1 million shares outstanding, and the dividend payment will directly impact the company's cash flow and shareholder returns, indicating a robust financial position.
- Company Background: Graco Inc. specializes in fluid and coating management technology, serving global manufacturing, processing, construction, and maintenance industries, and the consistent dividend payments underscore its leadership and competitive strength in the market.
See More
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- New Board Member: Graco announced that Steven B. Hedlund will join the Board of Directors effective September 10, 2026, bringing extensive manufacturing experience from his role as CEO of Lincoln Electric, which is expected to add strategic value to Graco.
- Leadership Background: Hedlund has served as CEO of Lincoln Electric since January 2024 and held various executive roles at Fortune Brands, showcasing strong capabilities in business development and innovation, which are anticipated to enhance Graco's international market expansion.
- Committee Roles: Hedlund will serve on Graco's Audit Committee and Management Organization and Compensation Committee, leveraging his deep understanding of global market strategy development and execution to improve corporate governance.
- Future Contributions: Graco's Chairman J. Kevin Gilligan stated that Hedlund's addition will provide significant support for the company's future success, particularly in driving value creation and market growth.
See More
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- Program Overview: In celebration of its 100th anniversary, the Graco Foundation launched a $1 million Centennial Impact Initiative to support 10 Minnesota nonprofit organizations focused on self-sufficiency and workforce development.
- Funding for Each Organization: Each nonprofit partner will receive a $100,000 grant aimed at strengthening long-term stability, helping individuals build skills, access technical training, and prepare for careers in manufacturing and other high-demand fields.
- List of Beneficiaries: The funded organizations include AccessAbility, Inc., Achieve Twin Cities, and American Indian OIC, providing services ranging from job training to housing stability, directly impacting economic opportunities in their communities.
- Community Impact and Future Outlook: Graco CEO Mark Sheahan emphasized that this initiative not only supports community development but also plays a crucial role in cultivating the future workforce, highlighting the strong connection between the company and the communities where its employees live and work.
See More
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- Acquisition Overview: Graco Inc. announced the acquisition of Valco Melton for $447 million in cash, with the transaction expected to close in the third quarter, marking a strategic expansion in fluid and powder handling technologies.
- Tax Benefit Impact: The deal is anticipated to yield approximately $40 million in tax benefits, further enhancing Graco's financial performance and optimizing its capital structure to boost future investment capabilities.
- Business Synergy: The acquisition of Valco Melton will enhance Graco's capabilities in precision sealant and adhesive dispensing, closely aligning with its core expertise in fluid handling while introducing complementary vision-based quality assurance systems to improve product competitiveness.
- Future Growth Potential: Valco Melton is projected to generate $145 million in revenue by 2025, providing Graco with a new revenue stream that supports its long-term growth strategy in the industrial market.
See More
