Of many, two buyouts have been briefly discussed below: In December 2017, the company successfully acquired Smith Manufacturing in a bid to fortify its line striping and pavement maintenance equipment offerings. Graco predicts the inflationary pressures caused by material and freight costs, as well as tariffs, to lower margins by 50 basis points in the second half of 2018. Debts & Other Headwinds: A highly leveraged balance sheet can inflate financial obligations and prove detrimental for Graco's growth prospects.