H.B. Fuller finalizes acquisition of Royal Adhesives & Sealants
Boosting H.B. Fuller's problem-solving potential, the company has announced it has finalized its acquisition of Royal Adhesives & Sealants for $1.575B. H.B. Fuller is tapping adhesives in unique ways to improve a range of global issues. H.B. Fuller, combined with Royal, deepens its expertise in specialty and high-value applications used in a range of sectors, including electronics, hygiene, medical, transportation, clean energy, construction, and more. Together, the companies will enable an interconnected world, support better use of the world's finite resources, improve food security and access to clean drinking water, and address the challenges of a globally disperse and aging population. The acquisition expands H.B. Fuller's product offering in engineering, durable assembly and construction adhesives and makes H.B. Fuller the world's largest supplier of adhesives for insulating glass and commercial roofing applications. H.B. Fuller also expects the combined businesses to deliver very strong cash flow to pay down debt at an accelerated pace. "With this acquisition, we have created immediate value for shareholders based on Royal's solid organic growth track record, high EBITDA margin and strong rate of cash flow conversion. Looking ahead, we will now begin our planned three-year integration, including leveraging the $15 million in growth synergies and $35 million in cost synergies we identified prior to closing this transaction," said H.B. Fuller CEO Jim Owens.