Veralto announced that it has acquired the holding company that owns TraceGains for a purchase price of $350M. TraceGains is a provider of cloud-based software solutions that enable connected data and digital workflow management to help consumer brands meet increasingly stringent compliance and reporting regulations for food and beverage safety and traceability. Its solutions enable consumer brands to efficiently track ingredient inputs, monitor supplier quality and develop new products with greater safety and increased velocity. In 2024, TraceGains is expected to deliver just over $30 million in sales, with more than 95% of sales on a recurring basis, and a gross margin of approximately 80%. Since the beginning of 2022, TraceGains’ sales have grown at an average rate of greater than 20% on a year-over-year basis. The acquisition was funded with cash on hand and is expected to deliver a double-digit return on invested capital, exceeding the company’s weighted average cost of capital, in year 6. Veralto’s management team will discuss this acquisition in more detail during its third quarter 2024 financial results conference call on Thursday, October 24, 2024.