Graco to buy back $600 million of stock through accelerated repurchase
Graco will pay $600 million to Bank of America and expects an initial delivery of about 6.9 million shares, with final settlement scheduled for March 2027.
Key takeaways
- Graco (GGG) entered a $600 million accelerated share repurchase agreement with Bank of America, N.A. on Nov. 10, 2026. Graco will pay $600 million on Nov. 11 and expects an initial delivery of about 6.9 million shares, with final settlement scheduled for March 2027. Funding comes from cash on hand and its revolving credit facility.
Graco (GGG) agreed on Nov. 10, 2026 to repurchase $600 million of its common stock through an accelerated share repurchase agreement with Bank of America, N.A.
Graco will pay $600 million to Bank of America on Nov. 11, 2026, and expects an initial delivery of about 6.9 million shares that day, about 80% of $600 million divided by the Nov. 10 closing price.
The final share count will be set by the volume-weighted average share price over the term of the agreement, less a discount and subject to adjustments. Final settlement is scheduled for March 2027, though Bank of America may complete it earlier. At settlement, Bank of America may deliver additional shares, or Graco may deliver shares or make a cash payment.
Graco will fund the deal with cash on hand and borrowings under its existing revolving credit facility. The repurchase is made under its current authorization, under which about 17 million shares remained available as of Nov. 10. The buyback represents about 5% of outstanding shares.
"We view the ASR as a compelling use of capital that will enhance long-term shareholder value," President and Chief Executive Officer Mark Sheahan said.