Graco Inc. expects to retire about 6.9 million shares through a $600 million accelerated repurchase, which the company framed as a return of capital to shareholders.
A Nov. 10 filing with the Securities and Exchange Commission disclosed the agreement with Bank of America, N.A. Graco said the transaction is expected to cover about 5% of its outstanding shares and will use cash on hand and borrowings under its revolving credit facility.
The agreement called for payment on Nov. 11, when Graco expected to receive and retire about 6.9 million shares. The final share count will be calculated using Graco’s volume-weighted average share price during the agreement term, with the contract discount and adjustments applied.
About 17 million shares remained available under Graco’s existing repurchase authorization as of Nov. 10. The company said it viewed its shares as attractive and saw the repurchase as consistent with returning capital while retaining capacity for investment and acquisitions.
Final settlement is scheduled for March 2027, though Bank of America may elect to complete it earlier.
