H.B. Fuller to Buy Industrial Adhesives Business
ST. PAUL, MN -- H.B. Fuller Co. has signed an agreement to purchase the global industrial adhesives business of Forbo Group, Baar, Switzerland. The business to be acquired represents about 80 percent (by revenue) of the Forbo Bonding Systems division of Forbo Group. This business 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.
A supplier of industrial adhesives, Forbo is 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. In addition, there will be sizable opportunities to capitalize on synergies and eliminate duplication in a number of areas, including raw material procurement, manufacturing, and redundant services.
Subject to customary closing conditions and regulatory approvals, the transaction is expected to close as soon as March 2012.