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Graco Bets on Long-Term Growth with Valco Melton Acquisition
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The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational. Graco Inc. (NYSE:GGG) is included among the 10 Oversold Dividend Growth Stocks to Buy. On May 21, Graco Inc. (NYSE:GGG) announced a definitive agreement to acquire Valco Melton in a $447 million cash deal. Valco is a global supplier of adhesive application and quality assurance systems. The purchase price includes the present value of approximately $40 million in expected tax benefits and remains subject to customary adjustments. Based on Valco Melton’s expected results, the transaction values the company at about 14x its full-year 2025 EBITDA.Graco expects the acquisition to close during its fiscal third quarter, subject to the usual closing conditions. Valco Melton designs, manufactures, and supports industrial systems that apply adhesives with precision while helping manufacturers monitor product quality during production. Its technology is used mainly in packaging and a range of industrial manufacturing applications where dependable performance and product consistency are important. The company has approximately 650 employees and serves customers in more than 80 countries. In 2025, it generated roughly $145 million in revenue. The deal fits into Graco’s long-term growth strategy. It gives the company a stronger position in an expanding market, extends its global presence, and adds products that can support demand from both original equipment manufacturers and aftermarket customers. Following the completion of the transaction, Valco Melton will become part of Graco’s Industrial division. Graco Inc. (NYSE:GGG) provides technology and expertise for managing fluids and coatings in industrial and commercial applications. The company designs, manufactures, and markets systems and equipment that move, measure, control, dispense, and spray fluid and powder materials. While we acknowledge the potential of GGG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 15 Best Dividend Paying Stocks to Buy Right Now and 10 No-Brainer Dividend Stocks to Buy Disclosure: None. Follow Insider Monkey on Google News.
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