H B Fuller acquire Royal Adhesives & Sealants $1.8 million

H B Fuller to acquire Royal Adhesives for $1.8 million

10:14 AM, 7th September 2017
Royal Adhesives & Sealants headquarters at Washington, US. © SBT Photo/Santiago Flores
Royal Adhesives & Sealants headquarters at Washington, US. © SBT Photo/Santiago Flores

ST PAUL, US: H B Fuller Company (FUL) has signed an agreement to purchase Royal Adhesives & Sealants LLC, a leading manufacturer of high-value speciality adhesives and sealants, for a purchase price of $1,575 million.

This business consistently delivers industry-leading growth rates, EBITDA margins, and free cash flow that are expected to enhance H B Fuller’s position as a global leader in the adhesives industry.

H B Fuller is acquiring Royal from affiliates of American Securities LLC, based in New York with an office in Shanghai.

The company operates 19 manufacturing facilities in 5 countries and employs approximately 1,500 people globally.

With this acquisition, H B Fuller will gain product technology and add people and skills that will result in a more capable and dynamic company for customers and employees. H B Fuller remains committed to maintaining its current dividend and rapid deleveraging using the significant free cash flow it expects to have available for this purpose.

The transaction is expected to close as soon as October 2017.

“With Royal’s strong customer relationships and experienced team, we will add depth and breadth to our portfolio. Royal’s complementary offerings will expand our presence in North America, Europe and China, and add new technology and capabilities. Upon closing the transaction, H B Fuller will be a company with nearly $2.9 billion in revenue, focused on profitable growth in attractive engineering, durable assembly, and construction adhesives markets,” said Jim Owens, H B Fuller president and CEO.

Morgan Stanley & Co LLC is acting as H B Fuller’s sole financial advisor in relation to this acquisition, and Faegre Baker Daniels LLP is acting as H B Fuller’s legal counsel.

© Worldofchemicals News



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