Fluid and power handling company Graco Inc. announced Thursday that it has reached an agreement to acquire adhesive application supplier Valco Melton for $447 million.
Valco Melton designs and manufactures systems that precisely apply adhesives and verify quality during manufacturing processes, particularly in packaging. The Cincinnati company serves customers in more than 80 countries and generated revenues of about $145 million last year.
The deal is expected to be completed in Graco’s fiscal third quarter, which spans from late June to late September, subject to closing conditions.
“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 a statement. “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.”
