Graco Inc. GGG recently inked a deal to acquire Valco Melton. The acquisition is valued at a cash amount of $447 million. The deal value includes the present value of nearly $40 million in anticipated tax benefits and is subject to customary adjustments.
Based in Cincinnati, OH, Valco Melton is engaged in manufacturing industrial systems designed for accurate adhesive application and production quality verification. The company’s solutions are mainly used across packaging and industrial manufacturing applications.
Acquisition Rationale
The latest buyout is in sync with Graco’s policy of acquiring businesses to strengthen and 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 the company to support manufacturers in achieving reliable performance, better quality outcomes and higher productivity.
The acquired company will be added to Graco’s Industrial segment. Subject to customary closing conditions, the acquisition is expected to close in the third quarter of 2026.
Other Notable Acquisitions
Acquisitions are an essential aspect of GGG’s growth strategy. In November 2025, the company acquired Red Devil Equipment Company (Radia), which has been added to its Contractor segment. The acquisition is expected to strengthen GGG’s presence in the color solutions space by incorporating Radia’s advanced mixing, shaking and automated material-handling equipment portfolio.
In July 2025, Graco acquired Color Service S.r.l. (Color Service), which has been added to its Industrial segment. The addition of Color Service’s expertise in automated dosing systems allows the company to strengthen its powder handling portfolio and expand into new industries such as textiles, rubber, cosmetics plastics and food.
Graco’s Zacks Rank and Price Performance
GGG currently carries a Zacks Rank #4 (Sell). Graco has been witnessing weakness in the Expansion Markets segment owing to a decrease in semiconductor application sales in the Americas. High costs pose a threat to the company’s bottom line.
Image Source: Zacks Investment Research
In the past year, the stock decreased 10% against the industry’s 11% growth.
Graco expects improving order rates and product innovations to drive its performance in the quarters ahead. Its investments in manufacturing and distribution facilities are expected to foster growth.
Stocks to Consider
Some better-ranked stocks from the same space are discussed below:
Tennant Company TNC presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tennant’s earnings surpassed the consensus estimate by 141.7% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for TNC’s 2026 earnings has increased 6.2%.
Nordson Corporation NDSN currently carries a Zacks Rank of 2. Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.3%.
In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 0.7%.
RBC Bearings RBC presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.2%.
In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has inched up 0.5%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
RBC Bearings Incorporated (RBC): Free Stock Analysis Report
Graco Inc. (GGG): Free Stock Analysis Report
Nordson Corporation (NDSN): Free Stock Analysis Report
Tennant Company (TNC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).