Industry News

H.B. Fuller – Acquisition of Royal Adhesives & Sealants

H. B. Fuller acquired Royal Adhesives & Sealants (Source: H.B. Fuller)

USA • In December 2017 H.B. Fuller finalised its acquisition of Royal Adhesives & Sealants for USD 1.575 billion. H.B. Fuller has acquired Royal from affiliates of American Securities LLC. According to the company, H.B. Fuller deepens its expertise in specialty and high-value applications used in a range of sectors, including electronics, hygiene, medical, transportation, clean energy, construction. Aims are to 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.

H.B. Fuller also expects the combined businesses to deliver very strong cash flow to pay down debt at an accelerated pace. H.B. Fuller CEO Jim Owens comments: “Looking ahead, we will now begin our planned three-year integration, including leveraging the USD 15 million in growth synergies and USD 35 million in cost synergies we identified prior to closing this transaction.”

According to the company with Royal, H.B. Fuller gains a diverse set of technologies, including polyurethane, epoxy, butyl, polysulfide, water-based acrylic, polyisobutylene, solvent-based polychloroprene, MMA, and cyanoacrylate. According to H.B. Fuller it also gains critical small packaging capabilities that will allow for faster growth of its engineering adhesives segment, especially in North America and Europe. The acquisition nearly doubles the size of H.B. Fuller’s construction adhesives portfolio.

H.B. Fuller has acquired Royal from affiliates of American Securities LLC, based in New York with an office in Shanghai. In fiscal 2017 H.B. Fuller announced a net revenue of about US 2.8 billion.To learn more about the transaction, visit www.hbfuller.com/royal.

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Rosina Obermayer

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