Graco Inc. Finalizes €63 Million Acquisition of Color Service S.r.l., Expanding Global Reach in Precision Dosing Systems
Graco a leading global manufacturer of fluid handling equipment and systems, announced today the successful completion of its previously disclosed acquisition of Color Service S.r.l., an Italy-based company renowned for its innovative and highly specialized automated precision dosing systems for both powders and liquids. The deal, valued at €63 million (subject to customary post-closing adjustments), marks a significant milestone in Graco’s long-term growth strategy and reinforces its position as a leader in industrial technologies.
Color Service, headquartered in Cavazzale, Italy, has established itself as a global frontrunner in automated dispensing technologies. Founded in 1987, the company serves a wide range of industries including textiles, cosmetics, plastics, food, rubber, and pharmaceuticals. Its advanced dosing solutions are recognized for their accuracy, efficiency, and ability to reduce waste, supporting sustainable practices in manufacturing environments. In 2024, Color Service reported revenue of €34 million and currently employs approximately 140 professionals across its global operations.
The acquisition of Color Service further strengthens Graco’s already robust powder handling portfolio. It also enhances the company’s strategic capabilities by integrating technologies that are highly complementary to its existing fluid handling solutions. Graco believes this move will significantly broaden its product offerings in high-growth sectors that demand precision, automation, and environmental responsibility.
Strategic Fit with Graco’s Vision
Mark Sheahan, President and Chief Executive Officer of Graco, expressed strong optimism about the future of the combined companies.
The completion of this acquisition will strengthen our powder handling portfolio and opens growth opportunities with complementary technologies for new applications,” Sheahan said. “Color Service supports our global expansion strategy and aligns with Graco’s commitment to delivering innovative solutions that solve complex customer challenges.”
The integration of Color Service is expected to provide numerous synergies across Graco’s global operations, enabling improved customer reach, broader product innovation, and enhanced R&D capabilities. Graco also anticipates the acquisition will bolster its efforts to serve industries where material dosing accuracy is critical for product quality, production efficiency, and compliance with regulatory standards.
A Legacy of Precision and Innovation
Color Service’s automated dispensing systems are widely used to streamline the dosing of both powdered and liquid materials. The systems are designed to enhance productivity while minimizing human error, thereby delivering consistent results in environments where precision is paramount. Their modular design allows for scalability, serving both small-scale production environments and large-scale industrial operations.
Over nearly four decades, Color Service has built a reputation for engineering excellence, customization, and continuous innovation. The company’s proprietary software and hardware solutions provide real-time monitoring, recipe management, and integration with enterprise resource planning (ERP) systems, enabling full digital traceability and control in manufacturing processes.
As sustainability and automation become increasingly vital across all manufacturing sectors, Color Service’s technologies are particularly well-positioned to meet current and future market demands. Graco’s acquisition not only brings this innovation into its fold but also offers the opportunity to scale and distribute these solutions to a wider global customer base.
Global Reach and Local Expertise
With the acquisition, Graco gains a strategic presence in the European market through Color Service’s headquarters and manufacturing facilities in Italy. This regional footprint will support more localized service, faster response times, and closer collaboration with European customers and partners. It also complements Graco’s established operations in North America, Asia, and other global markets, ensuring a more integrated and responsive supply chain.
Color Service’s existing management team is expected to remain with the business post-acquisition, ensuring continuity in operations and preserving the institutional knowledge that has been key to its success. Graco emphasizes its intention to honor and build upon the company’s legacy, working collaboratively to identify new opportunities for joint innovation and market expansion.
Financial and Operational Outlook
While financial details beyond the purchase price were not disclosed, analysts see the acquisition as a strategically sound move. The €63 million transaction is viewed as an investment in long-term capability building rather than a short-term revenue boost. By integrating Color Service’s technologies, Graco expects to unlock value over time through increased operational efficiencies, product line enhancements, and expanded market share in sectors like chemicals, packaging, textiles, and food processing.
The acquisition is not expected to significantly impact Graco’s 2025 earnings guidance, but it sets the stage for stronger performance in subsequent years as integration milestones are achieved. The company has indicated that it will provide additional detail on the strategic benefits and progress of the acquisition in upcoming quarterly earnings reports.
Commitment to Customer-Centric Innovation
This acquisition underscores Graco’s ongoing commitment to customer-centric innovation. As industrial manufacturing becomes more complex, the need for precise, automated, and efficient systems is rapidly increasing. By combining forces with Color Service, Graco reinforces its mission to provide cutting-edge solutions that enhance productivity, reduce waste, and support sustainable production.
Moreover, the deal highlights Graco’s proactive approach to identifying and integrating specialized companies that align with its technological roadmap and values. In an era where adaptability and agility are essential to business resilience, Graco continues to position itself as a future-focused leader in fluid management and material handling systems
