$GGG · GRACO INC
Graco Inc. entered an accelerated share repurchase (ASR) agreement with Bank of America, N.A. to repurchase $600 million of common stock, representing approximately 5% of outstanding shares. Graco will pay $600 million on November 11, 2026, and expects to initially receive and retire about 6.9 million shares (roughly 80% of the payment divided by the November 10 closing price). Final settlement is scheduled for March 2027, with the final share count based on the volume-weighted average price during the term, less a discount. The repurchase is funded with cash on hand and borrowings under the existing revolving credit facility, under an authorization with about 17 million shares remaining.
- $600 million ASR with Bank of America, approximately 5% of Graco's outstanding shares.
- Initial delivery of about 6.9 million shares expected on November 11, 2026.
- Funded by cash on hand and borrowings under the existing revolving credit facility.
- About 17 million shares remained available under the repurchase authorization as of November 10, 2026.
- Final settlement scheduled for March 2027, based on VWAP less a discount.
Extended-hours trading shows GGG at $71.00, up 1.87% versus the $69.70 regular close, indicating a modestly positive initial reaction to the buyback announcement.
A $600 million buyback equal to roughly 5% of shares outstanding signals management confidence in Graco's valuation and returns capital to shareholders.
_Not applicable._
Final share count depends on Graco's VWAP during the ASR term; if the stock rises, fewer shares are repurchased, and settlement may require Graco to deliver shares or cash to Bank of America.