Minneapolis-based Graco Inc. is writing a hefty check for its latest expansion move, agreeing to buy Valco Melton, a Cincinnati-area maker of precision adhesive dispensers and vision-based quality assurance systems, for $447 million in cash. The deal will plug Valco Melton into Graco’s Industrial division and is expected to close in Graco’s fiscal third quarter.
Deal details
Graco laid out the terms in a Form 8-K filed May 21, stating that the $447 million price tag includes the present value of about $40 million in expected tax benefits and remains subject to customary purchase price adjustments. The company said the transaction values Valco Melton at roughly 14 times its full-year 2025 EBITDA and that closing is still contingent on customary conditions, according to SEC filings posted on StockTitan.
What Valco Melton makes
Valco Melton designs and manufactures automated hot-melt and cold-glue dispensing equipment, pattern-control electronics and camera inspection systems that show up across packaging lines and other industrial production setups. The company lists its world headquarters in the Cincinnati area and provides U.S. sales and service contacts on its website, per Valco Melton.
Scale and strategic fit
According to Graco’s disclosure, Valco Melton generated about $145 million in revenue in 2025, employs roughly 650 people, and serves customers in more than 80 countries. "This acquisition is a strong strategic fit for Graco and a natural extension of our industrial portfolio," Graco President and CEO Mark Sheahan said in the company release, as noted on StockTitan.
Why it matters here
Industry observers say the purchase continues a recent M&A push for Graco and ranks among the company's larger deals in the last several years, according to the Twin Cities Business Journal. The move follows last year’s addition of COROB, a high-tech dispensing and mixing firm, underscoring Graco’s strategy to build out complementary industrial and aftermarket capabilities, per a company release on BusinessWire.
For now, closing still depends on customary conditions and any required approvals, and Graco has signaled it expects to wrap the transaction in its fiscal third quarter. Regional manufacturers and investors will be watching to see how quickly the Valco Melton deal might accelerate Graco’s push into automation, inspection, and aftermarket services.
