Graco, a manufacturer of fluid handling equipment, acquired the stock of Alco Valves Group (Alco), a UK-based manufacturer of high quality, high-pressure valves used in oil & natural gas, and other industrial processes. Established in 1977, Alco offers a portfolio of widely known brands, including Alco Hi-Tek, Alco Valves, Alco Sub-Tek, and Alco Process. Alco has developed global business relationships with Oil & Natural Gas industry customers who are well known and recognised as leaders in their space.
“Gaining additional exposure to the Oil & Natural Gas industry is a logical extension for Graco and a strategically important initiative that will support our long-term sales and profit goals”, said Patrick J. McHale, Graco President and CEO. “Alco manufactures a comprehensive range of technically advanced high integrity valve products, a strong fit with Graco’s core competencies of designing and manufacturing advanced flow control technologies.” Alco operates manufacturing facilities in Manchester and Leeds, UK. In addition, it has warehousing and sales operations in Houston, Texas; Toronto, Canada; and Singapore. The newly acquired business will maintain its manufacturing and engineering base in the United Kingdom.
The acquisition was an all-cash transaction that closed for GBP 72M and is subject to normal post-closing purchase price adjustments.