Graco Completes $447M Acquisition of Valco Melton
Graco Inc. has closed its cash deal for adhesive systems maker Valco Melton, paying $447M at roughly 14x adjusted EBITDA.
Graco Inc. (NYSE: GGG), the Minneapolis-based company best known for making equipment that pumps, meters, and sprays fluids and powders, just wrapped up a major deal — snapping up Valco Melton for $447 million in cold, hard cash. If you're not familiar with Valco Melton, think of them as the folks who make the machines that apply adhesives precisely and check quality automatically in manufacturing lines around the world.
The price tag sounds hefty, but here's where it gets interesting for deal-watchers. Once you factor in expected tax benefits worth about $40 million in today's dollars, the effective cost comes down meaningfully. On that adjusted basis, Graco is paying roughly 14 times Valco Melton's 2025 adjusted EBITDA — a standard profitability metric that strips out interest, taxes, depreciation, and amortization. Looking ahead to 2026, when synergies kick in, that multiple drops to around 10x, suggesting Graco sees real financial upside from combining the two businesses.
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For Graco, this acquisition fits neatly into its broader strategy of expanding its portfolio of fluid-handling and dispensing technologies. Valco Melton brings adhesive application and quality assurance systems that complement what Graco already sells to industrial customers globally. Deals like this typically let the acquiring company cross-sell products into each other's customer bases and trim overlapping operational costs — which is likely how management justifies that falling multiple by 2026.
Whether you're a Graco shareholder or just someone tracking industrial M&A, this is a notable move. At $447 million, it's a meaningful bet that precision adhesive application is a growth area worth owning outright rather than competing against. Continue reading at BusinessWire.
