H.B. Fuller to acquire Forbo Group
H.B. Fuller Company announced an agreement to purchase the global industrial adhesives business of Forbo Group.
The business to be acquired represents about 80 percent (by revenue) of the Forbo Bonding Systems division of Forbo Group. This business will generate approximately $580 million in revenue for the fiscal year ending Dec.31, operates 17 manufacturing facilities in 10 countries, and employs more than 1,100 people globally.
The purchase price for the transaction is CHF 370 million on a debt-free and cash-free basis, or about $394 million at current exchange rates.
"Forbo is a supplier of industrial adhesives, known for the breadth of its product line in all of H.B. Fuller's core market segments, particularly packaging and durable assembly. With this acquisition, H.B. Fuller will gain product technology and add people and skills that will make the company stronger," the company said in a press release announcing the acquisition.
"With this acquisition, we are taking a further step forward in realizing our strategic plans to accelerate growth and improve EBITDA margins," said H.B. Fuller president and chief executive officer Jim Owens. "Upon closing of the transaction, H.B. Fuller will be a $2 billion company, focused on attractive segments of the industrial adhesives market. The acquired Forbo business will fortify our presence in Europe and enhance the transformation of our own business in that region. It will increase our business in China by about 50 percent, and broadly strengthen our capability in our core markets. In addition, we will enhance our leadership position in North America, gain proprietary technology and become one of a handful of manufacturers capable of producing VAE emulsions.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
