MINNEAPOLIS, Nov 11 — Graco Inc. (NYSE: GGG) today announced that it has entered into an accelerated share repurchase (“ASR”) agreement with Bank of America, N.A. to repurchase $600 million of the Company’s shares of common stock. The ASR represents approximately 5% of Graco’s outstanding shares and will be funded with cash on hand and borrowings under the Company’s existing revolving credit facility.
Under the ASR agreement, Graco will make an upfront payment of $600 million and expects to initially receive and retire approximately 6.9 million shares, representing approximately 80% of $600 million divided by the closing price of the Company’s common stock on November 10, 2026. The final number of shares repurchased will be determined at settlement based on the Company’s volume-weighted average share price during the term of the transaction, less a discount, and subject to certain adjustments. The transaction is expected to be completed in March 2027.
The ASR will be completed pursuant to the Company’s current share repurchase authorization, under which approximately 17 million shares remained available as of November 10, 2026.
“We believe Graco’s shares represent an attractive investment at current levels, and the $600 million accelerated share repurchase reflects our confidence in the company’s long-term value,” said Mark Sheahan, President and Chief Executive Officer. “Graco’s strong and consistent cash generation enables us to return meaningful capital to shareholders while preserving our ability to invest in organic growth and pursue strategic acquisitions. We view the ASR as a compelling use of capital that will enhance long-term shareholder value. Following the repurchase, we still retain significant financial flexibility to support our strategic priorities.”
