Graco's Journey and Market Dynamics

This is Jesse Pujji. Today, we're breaking down Graco, a leading manufacturer of fluid handling equipment and industrial products. Graco was founded in 1926 and has become a global leader in the design and manufacturing of systems and components used to move, measure, control, dispense, and spray a wide variety of fluids and powders.

If you've ever used a paint sprayer, you might be familiar with Graco's products, but Graco's equipment is used for much more than just household tasks. Its fluid handling systems glue the soles on shoes, pump ink onto bills, lubricate heavy machinery, and even coat Doritos with flavored powders.

To break down this $13 billion dollar business, I'm joined by Aaron Wasserman, Managing Partner at Third Period Capital. We discuss Graco's market position, its huge range of SKUs, and what the future might hold. Please enjoy this Breakdown of Graco.

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For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Disclaimer: This podcast does not constitute an offer or solicitation to buy any securities, investment products, or investment advisory services managed by Aaron L. Wasserman or Third Period Capital. Any such offer or solicitation will be made only at the time a qualified offeree receives a private placement memorandum describing the offering and only in those jurisdictions where permitted by law.

Show Notes

(00:00:00) Introduction to Business Breakdowns

(00:04:00) Introduction to the Episode

(00:04:52) First Question - Overview of Graco

(00:05:40) Graco's Market and Products

(00:06:57) Customer Segments and Sales Strategy

(00:09:29) Financial Performance and Growth

(00:11:08) Historical Milestones and Leadership

(00:14:34) Competitive Landscape and Differentiators

(00:23:40) Acquisitions and Future Opportunities

(00:26:31) Financial Efficiency and Capital Allocation

(00:28:10) Product Development and Cost Management

(00:28:53) Company Culture and Productivity

(00:30:44) Customer Relationships and ROI

(00:40:05) Risks and Challenges

(00:43:45) Lessons for Investors and Operators