By Connor Hart
H.B. Fuller sold its flooring business to Pacific Avenue Capital Partners for about $80 million, amid a restructuring which would see the company acquire two medical-adhesive-technology companies
The divestiture, which closed Monday, will result in a reduction in annual revenue of about $160 million and adjusted earnings before interest, taxes, depreciation and amortization of about $15 million going forward, the St. Paul, Minn., H.B. Fuller said.
These losses will be offset by the purchases of GEM, an Italian manufacturer of medical adhesives, and Medifill, an Irish formulator and producer of medical-grade adhesives. When combined, the two companies are expected to generate 2024 net revenue and adjusted Ebitda of 23 million euros ($24.3 million) and EUR11.5 million, respectively.
H.B. Fuller said the acquisitions, expected to close next month, will build upon its previous investments in the tissue-adhesives market. The specialty chemical company didn't share a purchase price.
As part of its restructuring, the company will combine its insulated glass, woodworking, and composite units--all of which are currently part of its engineering-adhesives segments--with its roofing and building envelope and infrastructure units to form a newly named global business unit: building adhesive solutions.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
December 02, 2024 13:53 ET (18:53 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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