Graham Corporation, a global leader in mission-critical fluid, power, heat transfer, and vacuum technologies, has announced the acquisition of Flacktek Manufacturing, LLC and Flacktek Sales, LLC. The acquisition, valued at $35 million, was paid 85% in cash and 15% using 75,818 shares of Graham's common stock. Additionally, there is potential to earn an additional $25 million in future performance-based cash earnouts over four years beginning with the company’s fiscal year 2027.
Flacktek, a pioneer in advanced mixing and material processing solutions, is recognized for its high-performance, bladeless centrifugal mixing technology, delivering highly repeatable, precision mixing with significantly faster cycle times, minimal entrained air, and reduced downtime between batches. The company has approximately $30 million in annualized revenue and has successfully expanded its portfolio beyond laboratory-scale systems into larger, highly differentiated platforms, most notably the mega™ system.
Following the acquisition, Graham's pro forma leverage ratio is approximately 1.2x, and the company has amended its credit agreement to enhance financial flexibility and support continued investment in organic growth initiatives and opportunistic acquisitions. Matt Gross, the CEO of Flacktek, will join Graham’s leadership team as vice president and general manager, ensuring continuity of operations and strategic execution.
The acquisition is expected to enhance margins, deepen customer relationships, and unlock cross-platform innovation opportunities across Graham’s defense, energy & process, and space end markets. Graham will provide additional details on the acquisition and update its fiscal 2026 outlook on its fiscal 2026 third-quarter earnings call scheduled for 11:00 am ET on Friday, February 6, 2026. As a result of these announcements, the company's shares have moved 0.84% on the market, and are now trading at a price of $74.19. For the full picture, make sure to review GRAHAM CORP's 8-K report.
