Graco to Buy Valco Melton in $447 Million Cash Deal
The fluid-handling equipment maker said the purchase adds precision adhesive dispensing and vision-based quality-assurance systems to its Industrial division.
Graco Inc. (GGG) agreed to acquire Valco Melton, a global provider of adhesive application and quality-assurance systems, for $447 million in cash, including the present value of about $40 million in expected tax benefits, subject to customary adjustments.
The all-cash purchase represents about 14 times Valco Melton’s full-year 2025 EBITDA. Graco said the deal is expected to close in the company’s fiscal third quarter after customary closing conditions are met.
Valco Melton designs, manufactures, and supports industrial systems that apply adhesives precisely and verify quality during production. Those solutions are used primarily in packaging and other industrial manufacturing settings where reliability and consistent output matter. The company has about 650 employees, serves customers in more than 80 countries, and generated about $145 million in revenue in 2025.
Graco, a global leader in fluid and powder handling technologies, said the acquisition expands its capabilities and global reach in precision adhesive application and quality-assurance technologies. Valco Melton will become part of Graco’s Industrial division.
President and CEO Mark Sheahan said the deal is a natural extension of Graco’s industrial portfolio. “Valco Melton expands our capabilities in precision sealant and adhesive dispensing, which closely aligns with Graco’s core expertise in fluid handling, while adding complementary vision-based quality assurance systems. These additions to our portfolio strengthen our ability to help manufacturers improve productivity, quality, and uptime across demanding production environments,” he said.
The transaction supports Graco’s long-term strategy by expanding its presence in a growing market segment, enhancing global reach, and adding capabilities that drive both original-equipment and aftermarket demand.
Sheahan also said Valco Melton’s global footprint, customer relationships, and history of innovation align with Graco’s operating model, and that the companies look forward to partnering to drive continued global organic growth.
Graco serves customers worldwide in manufacturing, processing, construction, and maintenance industries.