Graco Closes $447M Valco Melton Acquisition
Graco Inc. has completed its acquisition of Valco Melton, a global supplier of adhesive application and quality-assurance systems, for $447 million in cash.
After accounting for the present value of approximately $40 million in expected tax benefits, Graco said the net transaction value represents approximately 14 times Valco Melton’s 2025 adjusted EBITDA and approximately 10 times its estimated full-year 2026 synergy-adjusted EBITDA.
Valco Melton designs, manufactures and supports industrial systems that precisely apply adhesives and verify quality during production. Its equipment is used primarily in packaging and other industrial manufacturing applications where application consistency, reliability and process control are important.
The company has approximately 650 employees, serves customers in more than 80 countries and generated approximately $145 million in revenue in 2025.
Graco President and CEO Mark Sheahan said the transaction expands the company’s capabilities in precision adhesive dispensing and quality-assurance technologies. Graco plans to combine Valco Melton’s dispensing and inspection systems with its global manufacturing and distribution resources.
Valco Melton will operate within Graco’s Industrial segment. The company said the acquisition adds technologies that support both original equipment and aftermarket demand.
Graco supplies equipment used to move, measure, control, dispense and spray fluid and powder materials in industrial, commercial, construction and maintenance applications.
The acquisition expands Graco’s presence in application equipment, adding adhesive dispensing and in-line inspection technologies used to control industrial application processes.
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