Graco Inc. (GGG) has acquired Valco Melton in a cash transaction worth $447 million, completed recently. This deal is estimated to have a net value of approximately 14 times Valco Melton’s adjusted EBITDA for 2025, or 10 times its projected 2026 EBITDA, after factoring in anticipated tax benefits of around $40 million.
Valco Melton, based in Cincinnati, OH, reported revenues of $145 million in 2025, with over 50% stemming from aftermarket products. The acquisition aligns with Graco’s strategy of expanding its market presence by integrating Valco Melton’s adhesive application technologies into its fluid handling portfolio.
Following this acquisition, Graco aims to enhance its capabilities in precision sealant and adhesive dispensing, further supporting manufacturers in improving product quality and productivity. Valco Melton will become part of Graco’s Industrial segment.
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