H B Fuller to buy Forbo's industrial adhesives business for $395 mn
22 Dec 2011
US specialty chemical maker H B Fuller Co today said it will buy Switzerland's Forbo's industrial adhesives business for 370 million Swiss francs ($395 million) in cash, cementing its foothold in the global adhesives industry.
The business to be acquired represents about 80 per cent by revenue of the Forbo Bonding Systems division of Forbo Group. It operates 17 manufacturing facilities in 10 countries, and employs more than 1,100 people.
The acquisition, which will generate approximately $580 million in revenue for the fiscal year ending 31 December 2011, will enhance H B Fuller's position as a global leader in the adhesives industry.
The purchase price of ($395 million is on a debt-free and cash-free basis, and will be paid at the time of closing the deal.
St. Paul, Minnesota-based H B Fuller said that it has committed financing from Morgan Stanley, Citigroup and JPMorgan Chase.
Prior to closing the acquisition transaction, H B Fuller intends to raise permanent financing through the private placement and syndicated bank loan markets.
H B Fuller has previously announced specific financial goals for organic growth and EBITDA margin improvement and believes this acquisition will support delivery of both objectives.
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