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Breaking News

H.B. Fuller Integrates Forbo, Plans Facility Closures

NEWS
June 3, 2012

ST. PAUL, MN - H.B. Fuller Co. announced that it intends to make several organizational changes to support its growth and profitability strategy in the Europe, India, Middle East and Africa (EIMEA) operating segment. The plans support the segment's commitment to improve EBITDA margin to 15 percent by the year 2015 while completing the integration of the Forbo business in the region.

Earlier this year, H.B. Fuller completed its planned acquisition of the industrial adhesives business of Forbo Group, which has resulted in duplicate manufacturing and redundant services in the combined businesses. H.B. Fuller has now completed its integration assessments in EIMEA, and the resulting plans include the intended closure of five manufacturing facilities and a net reduction of approximately 100 positions in sales, finance, customer service, and research and development. The plans are based on a thorough analysis of the company's now-combined operations and are subject to Works Council and/or Trade Union consultations and other legal requirements.

This announcement follows the North America integration plan announcement on April 19, 2012. In addition, last week the company launched its integration plans for its Asia-Pacific operating segment. The global integration plan is now mostly complete.

H.B. Fuller also affirmed the company's intention to make capital investments in the EIMEA segment of approximately $90 million over the next three years. The investments will enable consolidation, facilitate increased production capacity, support new technologies in the company's European operations, and centralize finance-shared services and customer service functions in Mindelo, Portugal, as previously announced. These actions will enable the operating segment to modernize and enhance plant processes and use resources and technology more efficiently.

Overall, plans for investment and restructuring represent a net reduction of 370 positions. The facilities scheduled for closure are: Chatteris, United Kingdom; Pirmasens, Germany; and Vigo, Spain, as well as the previously announced closures planned for facilities in Borgolavezzaro, Italy, and Wels, Austria. These facility closures will be staggered over the next two years.

KEYWORDS: adhesives business consolidation

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