Graco Stock

Graco Inc., together with its subsidiaries, operates as a multi-national manufacturing company.

The company supplies technology and expertise for the management of fluids and coatings in industrial and commercial applications. The company designs, manufactures and markets systems and equipment used to move, measure, mix, control, dispense and spray fluid and powder materials. The company’s equipment is used in manufacturing, processing, construction and maintenance industries.

The company specializes in providing equipment solutions for difficult-to-handle materials with high viscosities, abrasive or corrosive properties, and multiple component materials that require precise ratio control.

The company strives to grow into new geographic markets by strategically adding commercial and technical resources and third-party distribution in growing and emerging markets. The company has grown its third-party distribution to have specialized experience in particular end-user applications. The company leverages its product technologies for new applications and industries.

The company also makes targeted acquisitions to broaden its product offerings, enhance its capabilities in the end-user markets the company serves, expand its manufacturing and distribution base and potentially strengthen the company’s geographic presence.

The company’s investment in new products, targeted acquisitions and strong manufacturing, engineering and customer service capabilities comprise the company’s long-term growth strategies, which the company coordinates and drives across its geographic regions.

Segments

The company classifies its business into three reportable segments, each with a worldwide focus: Contractor, Industrial and Process.

Each segment sells its products in North, Central and South America (the ‘Americas’); Europe, the Middle East and Africa (‘EMEA’); and the Asia Pacific. The company provides marketing and product design in each of these geographic regions. The company also provides application assistance to distributors and employs sales personnel in each of these geographic regions.

Contractor segment

Through this segment, the company offers sprayers that apply paint to walls and other structures, with product models for users ranging from do-it-yourself homeowners to professional contractors. Contractor equipment also includes sprayers that apply texture to walls and ceilings, highly viscous coatings to roofs, and markings on roads, parking lots, athletic fields and floors.

This segment also manufactures two-component proportioning systems that are used to spray polyurethane foam (‘spray foam’) and polyurea coatings. Spray foam is commonly used for insulating building walls, roofs, water heaters, refrigerators, hot tubs and other items. Polyurea coatings are applied on storage tanks, pipes, roofs, truck beds, concrete and other items. The company offers a complete line of pumps and proportioning equipment that sprays specialty coatings on a variety of surfaces for protection and fireproofing.

End users of this segment are primarily professional painters in the construction and maintenance industries, specialty contractors, tradesmen and do-it-yourselfers. Contractor products are marketed and sold in all major geographic areas. The company continues to add distributors throughout the world that specialize in the sale of Contractor products. Globally, the company is pursuing a broad strategy of converting contractors accustomed to manually applying paint and other coatings to spray technology.

The company’s Contractor products are distributed primarily though distributor outlets whose main products are paint and other coatings. Certain sprayers and accessories are distributed globally through the home center channel. Contractor products are also sold through general equipment distributors outside of North America.

Industrial segment

The Industrial segment includes the Industrial and Powder divisions. The Industrial segment markets equipment and solutions for moving and applying paints, coatings, sealants, adhesives and other fluids. Markets served include automotive and vehicle assembly and components production, including Electro or e-mobility, wood and metal products, rail, marine, aerospace, farm, construction, bus, recreational vehicles and various other industries. End users often invest in the company’s equipment to gain process efficiencies, improve quality or save on material or energy costs. A majority of this segment's business is outside of North America.

Most Industrial segment equipment is sold worldwide through specialized third-party distributors, integrators, design centers, original equipment manufacturers and material suppliers. Some products are sold directly to end users and may include design and installation to specific customer requirements. The company works with material suppliers to develop or adapt the company’s equipment for use with specialized or hard-to-handle materials. Distributors promote and sell the equipment, hold inventory, provide product application expertise and offer on-site service, technical support and integration capabilities. Integrators implement large individual installations in manufacturing plants where products and services from a number of different manufacturers are aggregated into a single system. Design centers engineer systems for their customers using the company’s products. Original equipment manufacturers incorporate the company’s Industrial segment products into systems and assemblies that they then supply to their customers.

Industrial

The Industrial division makes liquid finishing and advanced fluid dispense equipment primarily for use in industrial applications.

This division’s products include liquid finishing equipment that applies liquids on metals, wood and plastics, with emphasis on solutions that provide easy integration to paint monitoring and control systems. Products include paint circulating and paint supply pumps, paint circulating advanced control systems, plural component coating proportioners, various accessories to filter, transport, agitate and regulate fluid, and spare parts, such as spray tips, seals and filter screens. The Industrial division also offers a variety of applicators that use different methods of atomizing and spraying liquid materials, paint or other coatings depending on the viscosity of the fluid, the type of finish desired and the need to maximize transfer efficiency, minimize overspray and minimize the release of volatile organic compounds into the air. Manufacturers in the automotive, automotive feeder, commercial and recreational vehicle, military and utility vehicle, aerospace, farm, construction, wood and general metals industries use the company’s liquid finishing products.

The Industrial division also manufactures equipment for industrial customers that pumps, meters, mixes and dispenses sealant, adhesive and composite materials. Advanced fluid dispense equipment includes gel-coat equipment, chop and wet-out systems, resin transfer molding systems and applicators and precision dispensing solutions. This precision dispense equipment bonds, molds, seals, vacuum encapsulates and laminates parts and devices in a wide variety of industrial applications.

Powder

The Powder division makes powder finishing products and complete powder finishing systems that coat powder on metals. These products are sold under the Gema and SAT brands. Gema powder systems coat window frames, metallic furniture, automotive components and sheet metal. Primary end users of the company’s powder finishing products include manufacturers in the construction, home appliance, automotive component and custom project coater industries. The company strives to provide solutions in powder coating for end users in emerging and developed markets.

Process segment

The Process segment includes the Process and Lubrication divisions. The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants and other fluids. Markets served include food and beverage, dairy, oil and natural gas, pharmaceutical, cosmetics, semiconductor, electronics, wastewater, mining, fast oil change facilities, service garages, fleet service centers, automobile dealerships and industrial lubrication applications.

Most Process segment equipment is sold worldwide through third-party distributors and original equipment manufacturers. Some products are sold directly to end users, particularly in the oil and natural gas and semiconductor industries.

Process

The Process division makes pumps of various technologies that move chemicals, water, wastewater, petroleum, food and other fluids. Manufacturers and processors in the food and beverage, dairy, pharmaceutical, cosmetic, oil and natural gas, semiconductor, electronics, wastewater, mining and ceramics industries use these pumps. This division makes environmental monitoring and remediation equipment that is used to conduct ground water sampling and ground water remediation, and for landfill liquid and gas management.

Lubrication

The Lubrication division primarily designs and sells equipment for use in equipment maintenance and vehicle servicing. The company supplies pumps, hose reels, meters, valves and accessories for use by fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders and heavy equipment service centers.

This division also offers systems, components and accessories for the automatic lubrication of bearings, gears and generators in industrial and commercial equipment, compressors, turbines and on- and off-road vehicles. Automatic lubrication systems reduce maintenance costs, downtime and extend equipment life. These systems are utilized across a variety of industries, including construction, mining, industrial manufacturing, transportation, wind energy and oil and natural gas.

The Lubrication division also manufactures high pressure and ultra-high pressure valves used in the oil and natural gas industry, hydrogen refueling infrastructure, other industrial processes and research facilities. The division also has a line of chemical injection pumping solutions for precise injection of chemicals into producing oil wells and pipelines.

Manufacturing and Distribution

The company manufactures a majority of its products in the United States (‘U.S.’). The company also manufactures products in Switzerland (Industrial segment), Italy (Industrial segment), the United Kingdom (Process segment), the People’s Republic of China (‘P.R.C.’, or ‘China’) (all segments), Belgium (all segments) and Romania (Industrial segment). The company’s manufacturing is aligned with its business segments and is co-located with product development to accelerate technology improvements. The company performs critical machining, assembly and testing in-house for most of its products to control quality and improve response time. The company makes its products in focused factories and product cells. The company sources raw materials and components from suppliers around the world.

For all segments, the company primarily sells its equipment through third-party distributors worldwide, positioned throughout the company’s geographic regions, and through selected retailers. The company’s products are sold from its warehouse to the company’s third-party distributors or retailers who sell its products to end users. Certain of the company’s businesses sell their products directly to end-user customers and have direct relationships with customers.

Outside of the U.S., the company’s subsidiaries located in Australia, Belgium, Spain, Japan, Italy, Korea, India, the P.R.C., the United Kingdom and Brazil distribute the company’s products. Operations in Maasmechelen, Belgium, St. Gallen, Switzerland, and Shanghai, P.R.C. reinforce the company’s commitment to those regions.

Intellectual Property

The company owns a number of trademarks in the U.S. and foreign countries, including registered trademarks for ‘GRACO,’ ‘Gema,’ several forms of a capital ‘G,’ and various product trademarks that are material to the company’s business.

History

Graco Inc. was founded in 1926. The company, a Minnesota corporation, was incorporated in 1926.