Graco completes acquisition of Color Service for €63 million

MINNEAPOLIS - Graco Inc. (NYSE:GGG), a $13.9 billion industrial equipment manufacturer with impressive gross profit margins of 52%, has completed its previously announced acquisition of Color Service S.r.l., a global provider of automated dosing systems for powder and liquid applications, for €63 million, subject to customary adjustments.

The Italian-headquartered Color Service generated revenue of €34 million in 2024 and employs approximately 140 people worldwide, according to a press release statement. According to InvestingPro data, Graco maintains a strong balance sheet with more cash than debt, positioning it well for strategic acquisitions.

Mark Sheahan, President and CEO of Graco, said the acquisition "will strengthen our powder handling portfolio and opens growth opportunities with complementary technologies for new applications."

Sheahan added that Color Service supports Graco’s global expansion strategy and aligns with the company’s focus on delivering innovative solutions for complex customer challenges.

Graco, based in Minneapolis, specializes in technology and expertise for fluid and coating management in industrial and commercial applications. The company designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials.

The acquisition, which was previously announced, has now been finalized according to the company’s statement.

In other recent news, Graco Inc. announced its acquisition of Italian firm Color Service for €63 million, enhancing its capabilities in automated dosing systems. Color Service reported revenue of €34 million in 2024 and employs around 140 people globally. In financial updates, Graco declared a quarterly dividend of $0.275 per share, scheduled for payment in August 2025, reflecting the company’s commitment to shareholder value. Additionally, Graco plans to consolidate its Minnesota operations by relocating its Riverside Minneapolis teams to its campuses in the northwest metro area.

Regarding analyst perspectives, Wolfe Research reiterated its outperform rating for Graco, indicating a positive outlook amid current market conditions. Conversely, DA Davidson maintained a Neutral rating, highlighting mixed market trends across Graco’s segments but noting potential for low-single-digit organic growth in 2025. These developments reflect Graco’s strategic moves and market positioning as it navigates industry dynamics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.