Graco Inc. (NYSE:GGG) Q4 2023 Earnings Call Transcript

Mark Sheahan: Yes, we don’t really have a targeted, let’s say, operating margin for a business that we’re going to acquire. But for sure, in most cases, their operating margins are going to be below Graco’s or their EBIT margins or EBITDA margins. So what we’re really looking for is a good business where we understand the product line. We understand the customers. We think we can bring some value, particularly on operational side of the business and take their existing margin rate and improve it over time. I think we’ve got good experience with the deals that we have done in that — with that kind of a playbook. And that’s really what we’d be looking for with M&A as we’re scouring the market for opportunities.

Andrew Buscaglia: Okay, very helpful. Thank you.

Operator: Thank you. If there are no further questions, I’d like to turn the call back over to Mark Sheahan for closing remarks.

Mark Sheahan: Okay. Thanks very much. I’d like to thank our customers, employees, all of our channel partners around the world for a great year in 2023, their dedication and loyalty and unwavering commitment to Graco is really what provides us with the winning edge in the marketplace. I thank you all for participating on today’s call. That concludes the call for today.

Operator: This concludes our conference call for today. Thank you all for participating, and have a nice day. All parties may now disconnect.