H.B. Fuller Company Agrees to Purchase Adecol
July 18 2017 - 8:00AM
H.B. Fuller Company (NYSE:FUL) has signed an agreement to purchase
adhesives company, Adecol Ind. Química, Limitada, a highly
respected manufacturer of quality adhesive technologies in Brazil.
Adecol works closely with customers to develop innovative,
high-quality hot melt, reactive and polymer-based adhesive
solutions for customers in the packaging, converting and assembly
markets. Based in Guarulhos, Brazil, this business generated nearly
USD $40 million in revenue for the 2016 fiscal year. The
company has agreed to pay 8X 2016 EBITDA for the business.
“With this acquisition, we will further enhance our business in
Brazil by partnering with customers to produce new and better
consumer and durable goods products in this dynamic region,” said
Jim Owens, president and CEO, H.B. Fuller. “H.B. Fuller has a
strategic focus on growing our presence in emerging markets, and
the Adecol team has deep market knowledge and local manufacturing
capabilities that will enable us to partner more closely with
customers and to grow in Brazil and across Latin America. We look
forward to welcoming the employees of Adecol to the H.B. Fuller
team.”
The company expects to finalize the transaction in the next
30-60 days.
About H.B. Fuller:For 130 years, H.B. Fuller
has been a leading global adhesives provider focusing on perfecting
adhesives, sealants and other specialty chemical products to
improve products and lives. With fiscal 2016 net revenue of $2.1
billion, H.B. Fuller’s commitment to innovation brings together
people, products and processes that answer and solve some of the
world’s biggest challenges. Our reliable, responsive service
creates lasting, rewarding connections with customers in
electronics, disposable hygiene, medical, transportation, clean
energy, packaging, construction, woodworking, general industries
and other consumer businesses. And, our promise to our people
connects them with opportunities to innovate and thrive. For more
information, visit us at www.hbfuller.com and subscribe to our
blog.
About ADECOL:As the largest manufacturer of
industrial adhesives in Brazil, ADECOL has innovation in its DNA.
One of its differentials is tailor-made work, developing specific
formulations that generate a broad and flexible portfolio capable
of serving numerous market niches. From automobile manufacturing to
the packaging sector, the company produces 1.5 thousand tons of
adhesives per month. Acting as a development laboratory, it adapts
imported products and raw materials to the Latin America market. In
2016, it closed sales in the amount of approximately USD $35.7
million.
Safe Harbor for Forward-Looking
Statements:Certain statements in this document may be
considered forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
are subject to various risks and uncertainties, including but not
limited to the following: the Company’s ability to effectively
integrate and operate acquired businesses; the ability to
effectively implement Project ONE; political and economic
conditions; product demand; competitive products and pricing; costs
of and savings from restructuring initiatives; geographic and
product mix; availability and price of raw materials; the Company’s
relationships with its major customers and suppliers; changes in
tax laws and tariffs; devaluations and other foreign exchange rate
fluctuations; the impact of litigation and environmental matters;
the effect of new accounting pronouncements and accounting charges
and credits; and similar matters. Further information about the
various risks and uncertainties can be found in the Company’s SEC
10-K filing for the fiscal year ended December 3, 2016. All
forward-looking information represents management’s best judgment
as of this date based on information currently available that in
the future may prove to have been inaccurate. Additionally, the
variety of products sold by the Company and the regions where the
Company does business make it difficult to determine with certainty
the increases or decreases in net revenue resulting from changes in
the volume of products sold, currency impact, changes in product
mix, and selling prices. However, management’s best estimates of
these changes as well as changes in other factors have been
included.
Kimberlee Sinclair
Global Communications
+1 651 236 5823
kimberlee.sinclair@hbfuller.com
Maximillian Marcy
Investor Relations
+1 651 236 5062
max.marcy@hbfuller.com
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