Company: GGG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0000042888-25-000047
Chunk: 13

Company: GRACO INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 1
Chunk 13
---
. Acquisitions

On November 4, 2024, the Company acquired Corob for €230 million in cash, subject to normal post-closing purchase price adjustments, with up to €30 million in additional contingent consideration. As of September 26, 2025, the purchase price allocation remains preliminary as the Company completes its assessment, principally related to income taxes. The total purchase consideration consisted of the following (in thousands):Cash paid$276,188 Contingent consideration14,498 Total purchase consideration$290,686 Preliminary purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands):Cash and cash equivalents$30,899 Accounts receivable28,120 Inventories26,119 Other current assets18,515 Property, plant and equipment16,619 Other non-current assets5,854 Identifiable intangible assets131,240 Goodwill127,252 Current liabilities(52,968)Deferred income taxes, net(33,474)Other non-current liabilities(7,490)Total net assets acquired$290,686 Goodwill recognized from the Corob acquisition primarily reflects an intangible asset that does not qualify for separate recognition. None of the goodwill acquired with Corob is deductible for tax purposes.Identifiable intangible assets and estimated useful life are as follows (in thousands):Estimated Life (years)Trade name$32,458 IndefiniteCustomer relationship76,169 15Developed technology20,557 10Backlog2,056 0.5Total identifiable intangibles assets$131,240 

14

The following unaudited pro forma information provides the results of operations for the periods ended September 26, 2025 and September 27, 2024, as if the acquisition of Corob had been completed at the beginning of fiscal year 2023 (in thousands, except per share amounts):  Three Months EndedNine Months EndedSeptember 26,2025September 27,2024September 26,2025September 27,2024Net sales$543,358 $547,548 $1,643,448 $1,660,820 Net earnings137,628 121,935 390,887 379,689 Earnings per shareBasic$0.83 $0.72 $2.34 $2.25 Diluted$0.82 $0.71