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Key Takeaways Graco completed the $447 million cash acquisition of Valco Melton, adding it to its Industrial segment.Valco Melton generated $145 million in 2025 revenues, with more than 50% from aftermarket products.Graco expects the deal to expand its fluid handling portfolio and help manufacturers improve productivity. Graco Inc. (GGG - Free Report) recently completed the cash purchase of Valco Melton for $447 million. Considering the roughly $40 million in anticipated tax benefits, the net transaction is valued at about 14 times Valco Melton’s adjusted EBITDA for 2025 and 10 times its projected 2026 EBITDA, including synergies.Headquartered in Cincinnati, OH, Valco Melton specializes in manufacturing industrial systems designed for accurate adhesive application and production quality verification. The company has a strong customer base across several industries, including packaging, folding carton, envelope, nonwovens, print finishing, textiles, automotive and others. Valco Melton’s revenues totaled $145 million in 2025, with more than 50% generated from aftermarket products.
The latest buyout is in sync with Graco’s policy of acquiring businesses to expand its market share and customer base. The inclusion of Valco Melton’s precision adhesive dispensing and vision-based quality assurance technologies will enhance GGG’s capabilities in precision sealant and adhesive dispensing, further expanding its fluid handling portfolio.
This acquisition will enable GGG to support manufacturers in achieving reliable performance, better product quality and higher productivity. The acquired company will be added to Graco’s Industrial segment.
Other Notable AcquisitionsIn November 2025, Graco acquired Red Devil Equipment Company (Radia). The acquisition boosted GGG’s presence in the color solutions space by incorporating Radia’s advanced mixing, shaking and automated material-handling equipment portfolio.
Also, the company’s buyout of Color Service S.r.l. in July 2025 strengthened its powder handling portfolio and expanded its presence across textiles, rubber, cosmetics, plastics and food industries.
Graco’s Zacks Rank and Price PerformanceGGG currently carries a Zacks Rank #3 (Hold). Graco is poised to benefit from product innovation, targeted acquisitions, disciplined capital returns and ample financial flexibility. High costs pose a threat to the company’s bottom line.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have gained 4.7% compared with the industry’s growth of 2.6%.
The Zacks Consensus Estimate for its earnings is pegged at $3.30 for 2026, suggesting an increase of 6.1% from the 60-day-ago figure.
Key PicksSome better-ranked stocks from the same space are presented below.
Flowserve Corporation (FLS - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Flowserve’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 11.2%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2026 bottom line has increased 1.2%.
Helios Technologies (HLIO - Free Report) currently carries a Zacks Rank of 2. Helios Technologies’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 13.1%. In the past 60 days, the Zacks Consensus Estimate for HLIO’s 2026 earnings has increased 10.4%.
RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 8.7%. The Zacks Consensus Estimate for RBC’s fiscal 2027 (ending March 2027) earnings has increased 4.9% over the past 60 days.