12.07.17
Boosting H.B. Fuller’s problem-solving potential, the company has finalized its acquisition of Royal Adhesives & Sealants for $1.575 billion. The acquisition also nearly doubles the size of H.B. Fuller’s construction adhesives portfolio.
H.B. Fuller, combined with Royal, deepens its expertise in specialty and high-value applications used in a range of sectors, including electronics, hygiene, medical, transportation, clean energy, construction and more. Together, the companies will enable an interconnected world, support better use of the world’s finite resources, improve food security and access to clean drinking water, and address the challenges of a globally disperse and aging population.
“This is an exciting step for Royal and our network of brands,” says Ted Clark, Royal Adhesives & Sealants CEO. “Combining these two businesses creates a more capable and dynamic company for our customers and employees. We complement each other, selling in adjacent markets with very little customer overlap, and that presents an interesting number of growth opportunities. We offer different technologies, expertise and capabilities. Yet, we share the same passion for solving product development challenges by discovering and applying innovations in adhesive technology.”
The acquisition expands H.B. Fuller’s product offering in engineering, durable assembly and construction adhesives and makes H.B. Fuller the world’s largest supplier of adhesives for insulating glass and commercial roofing applications, the company says.
“We are passionate about being the best adhesives provider in the world, and we’ve been investing significantly over the last decade to make it a reality,” says Jim Owens, H.B. Fuller CEO. “With complementary adhesives expertise from Royal, we’re able to make an even bigger impact on improving people’s lives. Our customers will benefit from a broader portfolio and expanded development and production capabilities. We’ll be a more capable and dynamic company with additional opportunities for the thousands of dedicated H.B. Fuller and Royal employees around the world. And, the acquisition accelerates our business strategy and positions us to exceed our 2020 targets.”
H.B. Fuller also expects the combined businesses to deliver very strong cash flow to pay down debt at an accelerated pace. Owens adds, “With this acquisition, we have created immediate value for shareholders based on Royal’s solid organic growth track record, high EBITDA margin and strong rate of cash flow conversion. Looking ahead, we will now begin our planned three-year integration, including leveraging the $15 million in growth synergies and $35 million in cost synergies we identified prior to closing this transaction.”
H.B. Fuller, combined with Royal, deepens its expertise in specialty and high-value applications used in a range of sectors, including electronics, hygiene, medical, transportation, clean energy, construction and more. Together, the companies will enable an interconnected world, support better use of the world’s finite resources, improve food security and access to clean drinking water, and address the challenges of a globally disperse and aging population.
“This is an exciting step for Royal and our network of brands,” says Ted Clark, Royal Adhesives & Sealants CEO. “Combining these two businesses creates a more capable and dynamic company for our customers and employees. We complement each other, selling in adjacent markets with very little customer overlap, and that presents an interesting number of growth opportunities. We offer different technologies, expertise and capabilities. Yet, we share the same passion for solving product development challenges by discovering and applying innovations in adhesive technology.”
The acquisition expands H.B. Fuller’s product offering in engineering, durable assembly and construction adhesives and makes H.B. Fuller the world’s largest supplier of adhesives for insulating glass and commercial roofing applications, the company says.
“We are passionate about being the best adhesives provider in the world, and we’ve been investing significantly over the last decade to make it a reality,” says Jim Owens, H.B. Fuller CEO. “With complementary adhesives expertise from Royal, we’re able to make an even bigger impact on improving people’s lives. Our customers will benefit from a broader portfolio and expanded development and production capabilities. We’ll be a more capable and dynamic company with additional opportunities for the thousands of dedicated H.B. Fuller and Royal employees around the world. And, the acquisition accelerates our business strategy and positions us to exceed our 2020 targets.”
H.B. Fuller also expects the combined businesses to deliver very strong cash flow to pay down debt at an accelerated pace. Owens adds, “With this acquisition, we have created immediate value for shareholders based on Royal’s solid organic growth track record, high EBITDA margin and strong rate of cash flow conversion. Looking ahead, we will now begin our planned three-year integration, including leveraging the $15 million in growth synergies and $35 million in cost synergies we identified prior to closing this transaction.”