H.B. Fuller Company Agrees to Purchase Adecol Supports Companys Strategic Growth Plan in Emerging Markets
GlobeNewswire 18-Jul-2017 9:00 AM
ST. PAUL, Minn., July 18, 2017 (GLOBE NEWSWIRE) -- H.B. Fuller Company (NYSE:FUL) has signed an agreement to purchase adhesives company, Adecol Ind. Qumica, 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. Fullers commitment to innovation brings together people, products and processes that answer and solve some of the worlds 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 Companys 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 Companys 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 Companys SEC 10-K filing for the fiscal year ended December 3, 2016. All forward-looking information represents managements 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, managements best estimates of these changes as well as changes in other factors have been included.
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