Company: GGG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000042888-25-000025
Chunk: 37

Company: GRACO INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 8
Chunk 37
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27,2025June 28,2024Net sales$571,806 $588,253 $1,100,090 $1,113,273 Net earnings128,138 134,698 253,258 257,755 Earnings per shareBasic$0.77 $0.80 $1.51 $1.53 Diluted$0.76 $0.78 $1.49 $1.49 Unaudited pro forma information has been provided for comparative purposes only and the information does not necessarily reflect what the combined company's results of operations would have been had the acquisition occurred at the beginning of 2023. It also may not be useful in predicting the future results of operations of the combined company. The Company completed another acquisition in 2024 that was not material to the consolidated financial statements.

Subsequent EventOn July 17, 2025, the Company entered into a definitive agreement to acquire Color Service s.r.l. ("Color Service") for €63 million, subject to certain customary adjustments. Color Service is a global leader in automated dosing systems for powder and liquid applications and serves a wide range of industries including textiles, rubber, cosmetics plastics and food. The acquisition is expected to be completed during the third quarter of fiscal year 2025 and its results will be included within the Powder Division in the Industrial Segment. The acquisition will be funded with cash on hand.

15

Item 2. GRACO INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

The Company supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and coating materials. Management classifies the Company’s business into three reportable segments: Contractor, Industrial and Expansion Markets. Key strategies include developing and marketing new products, leveraging products and technologies into additional, growing end-user markets, expanding distribution globally and completing strategic acquisitions that provide additional channels and technologies. 

The following Management’s Discussion and Analysis reviews significant factors affecting the Company’s results of operations and financial condition. This discussion should be read in conjunction with the financial statements and the accompanying notes to the financial statements.

Global Trade Uncertainty 

Our operations, supply chain and financial performance are directly impacted by evolving global trade policies and tariffs as well as associated geopolitical tensions