Graco Inc. Announces New Global Operating Structure

By Bobby Samwell • Wednesday, September 18 15:15 • Permanent Link

Graco Inc. has announced a new organizational structure aimed at driving global growth and enhancing profitability and operational efficiency. The company will transition to a global, customer-centric operating structure effective January 1, 2025, with four business divisions: Industrial, Expansion Markets, Contractor, and Powder.

The Industrial Division will be formed by combining the company’s current Industrial and Lubrication Equipment Divisions and the Process Transfer Equipment business from the Process Division. This new division will be led by Peter J. O’Shea, the current President of the Worldwide Lubrication Equipment Division and President of South and Central America.

The newly-established Expansion Markets Division will focus on driving Graco’s inorganic growth in adjacent markets, encompassing existing businesses such as environmental, semiconductor, high-pressure valves, and electric motors. This division will be headed by Timothy R. White, the current President of the Worldwide Process Division.

Meanwhile, the Contractor Division, previously known as the Contractor Equipment Division, will be restructured to cater to the needs of global customers. The Powder Division will maintain its current global business structure. Both divisions will retain their existing executive leadership.

Starting January 1, 2025, Graco will classify its business into three reportable segments: Contractor, Industrial, and Expansion Markets. The company will report financial results under these segments from the first quarter of 2025, with recast segment financial information expected to be provided for the fourth quarter of 2024 as supplemental information on the company’s website.

Caroline Chambers, the President of EMEA, will depart Graco on December 31, 2024, following her assistance with the transition. Graco's President and CEO, Mark Sheahan, expressed his gratitude for Chambers' significant contributions to the company and wished her success in her future endeavors.

Graco Inc. is a Minneapolis-based company that designs, manufactures, and markets systems and equipment for the management of fluids and coatings in industrial and commercial applications. The company serves customers globally in industries such as manufacturing, processing, construction, and maintenance.

For additional information about Graco Inc., please visit their website at www.graco.com. The market has reacted to these announcements by moving the company's shares 0.6% to a price of $84.42. For the full picture, make sure to review Graco's 8-K report.

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