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MINNEAPOLIS - Graco Inc. (NYSE: GGG), a prominent manufacturer of fluid handling equipment with a market capitalization of $14.3 billion and impressive gross profit margins of 53%, has announced plans to relocate its Riverside Minneapolis operations and corporate teams to its expanding campuses in the northwest metro area. According to InvestingPro data, the company maintains strong financial health with robust cash flows and minimal debt.
The company, which has been based along the Mississippi River in Northeast Minneapolis since the 1940s, has gradually moved many of its Minnesota-based teams to the cities of Rogers, Dayton, and Anoka. These locations house Graco’s manufacturing facilities and office space, supporting its global operations that generate annual revenues of $2.15 billion.
President and CEO Mark Sheahan stated, "As we continue to grow and evolve globally, we’ve taken a thoughtful look at how best to align our Minnesota facilities to maximize manufacturing capacity." He added that the consolidation would position Graco for continued growth and enhance collaboration and operational efficiency.
The transition away from the Riverside campus will occur over the next two years. Graco is also planning to construct a new corporate headquarters on its existing campus in either Rogers or Dayton. The company will prepare the Riverside campus for sale as part of this move.
With operations in 12 countries and product sales in over 100 countries, Graco’s decision reflects its strategy to adapt its physical footprint to support its global expansion.
This strategic move is based on a press release statement from Graco Inc. and aims to provide a factual report on the company’s operational consolidation plans.
In other recent news, Graco Inc. reported its first-quarter 2024 earnings, which exceeded analysts’ expectations with an earnings per share (EPS) of $0.72, compared to the forecasted $0.67. The company also reported revenue of $528 million, slightly above the expected $526.95 million, marking a 7% increase year-over-year. Despite these positive financial results, Graco faced challenges in its contractor segment, particularly in the EMEA construction markets. In another development, shareholders at Graco’s Annual Meeting approved the compensation for Named Executive Officers and elected three directors to serve three-year terms. Additionally, Deloitte & Touche LLP was ratified as the company’s independent registered public accounting firm for fiscal year 2025. Graco continues to navigate global economic uncertainties, including tariff impacts, with strategic initiatives like the CoreUp acquisition contributing to operational efficiencies. The company’s conservative outlook projects low single-digit organic constant currency growth for the full year, with plans for capital expenditures ranging between $50-60 million in 2025.
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