Graco has announced a definitive agreement to acquire Valco Melton, a global provider of adhesive application and quality assurance systems, in a cash transaction valued at approximately $447 million.
The acquisition is aimed at expanding Graco’s industrial technology portfolio and strengthening its position in precision adhesive dispensing, packaging, and manufacturing applications. The deal value includes nearly $40 million in expected tax benefits and is subject to customary adjustments and closing conditions.
Based in Cincinnati, Ohio, Valco Melton designs and manufactures industrial systems used for adhesive application, coating, cold glue and hot melt dispensing, and vision-based quality inspection. Its technologies are widely used across packaging, paper converting, nonwovens, automotive, woodworking, and other industrial manufacturing sectors.
According to Graco, the acquisition aligns with its long-term strategy of expanding through complementary industrial technologies and strengthening its global customer base. The addition of Valco Melton’s precision adhesive and inspection technologies is expected to enhance Graco’s capabilities in fluid handling and automated manufacturing solutions.
Valco Melton generated approximately $145 million in revenue in 2025 and currently serves customers in more than 80 countries with a workforce of around 650 employees. Following completion of the transaction, the company will become part of Graco’s Industrial division.
Graco President and CEO Mark Sheahan stated that the acquisition represents a natural extension of the company’s industrial portfolio, adding complementary quality assurance and adhesive dispensing technologies that support higher productivity and manufacturing efficiency.
The transaction is expected to close during Graco’s fiscal third quarter of 2026, subject to regulatory approvals and customary closing conditions. Industry analysts believe the acquisition will strengthen Graco’s presence in the growing industrial automation and packaging technology sectors while expanding its global reach and aftermarket opportunities.