Graco has agreed to acquire adhesive dispensing and quality assurance systems provider Valco Melton in a $447 million cash deal that expands Graco’s industrial portfolio and strengthens its position in packaging and manufacturing applications.

Minneapolis-based Graco Inc. has entered into a definitive agreement to acquire Valco Melton, a global supplier of adhesive dispensing, coating and quality assurance systems, in an all-cash transaction valued at approximately $447 million.

Graco said Valco Melton will join its Industrial division following the close of the deal, which is expected in the third quarter of 2026 pending customary regulatory approvals and closing conditions.

Founded in 1952 and headquartered in Cincinnati, Valco Melton manufactures adhesive dispensing machinery, cold glue and hot melt systems, coating equipment and vision inspection technologies used in packaging, paper converting, nonwovens, automotive and woodworking applications. The company serves customers in more than 90 countries and employs more than 650 people globally.

Graco, founded in 1926, develops fluid and powder handling systems and equipment for industrial, construction, processing and lubrication applications. The company generated approximately $1.9 billion in revenue in 2025 and has continued expanding its industrial technology portfolio through acquisitions.

In announcing the transaction, Graco said the acquisition adds complementary adhesive application and inspection capabilities to its existing industrial fluid handling technologies. The company said Valco Melton’s product lineup and global customer base align with Graco’s long-term growth strategy in industrial and packaging markets.

“We are pleased to welcome Valco Melton to Graco,” Graco President and CEO Mark Sheahan said in the announcement, adding that the business brings “highly complementary technologies, strong customer relationships and an experienced global team.”

Valco Melton CEO Scott Soutar said the two companies share a longstanding focus on material handling markets and customer service. “We look forward to a partnership that underscores our common dedication to our global customers,” he said.

Valco Melton said it will continue serving industrial and packaging customers with adhesive dispensing and inspection technologies designed to improve manufacturing efficiency and product quality.