Graco, a global leader in fluid and powder handling technologies, announced that it has entered into a definitive agreement to acquire Valco Melton, a global provider of adhesive application and quality assurance systems, for $447 million in cash, including the present value of approximately $40 million in expected tax benefits, subject to customary adjustments.
The deal values Valco Melton at approximately 14x its full year 2025 EBITDA. The transaction is expected to close during Graco’s fiscal third quarter, pending customary closing conditions.
Valco Melton designs, manufactures, and supports industrial systems that precisely apply adhesives and verify quality during production processes. The company’s solutions are used primarily in packaging and industrial manufacturing environments where reliability, quality, and consistent production performance are critical.
The acquisition expands Graco’s industrial portfolio by adding precision sealant and adhesive dispensing capabilities along with complementary vision-based quality assurance systems. Graco said the transaction strengthens its ability to help manufacturers improve productivity, quality, and uptime in demanding production environments.
Valco Melton has approximately 650 employees, serves customers in more than 80 countries, and generated approximately $145 million in revenue during 2025. Following the completion of the acquisition, Valco Melton will become part of Graco’s Industrial division.
Graco said the acquisition aligns with its long-term growth strategy by increasing its presence in a growing market segment, expanding its global footprint, and adding technologies that support both original equipment and aftermarket demand.
KEY QUOTES:
“This acquisition is a strong strategic fit for Graco and a natural extension of our 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.”
Mark Sheahan, President and CEO, Graco
“Valco Melton’s global footprint, strong customer relationships, and history of innovation align closely with Graco’s operating model, and we look forward to partnering with their team to drive continued global organic growth.”
Mark Sheahan, President and CEO, Graco
