21/02/2018 – H.B. Fuller — auf Deutsch lesen
Acquisition of Royal Adhesives & Sealants
Few people realize the impact of adhesives. Adhesives have the potential to make the world a better place.
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.
"This is an exciting step for Royal and our network of brands," said Royal Adhesives & Sealants CEO, Ted Clark. "Combining these two businesses creates a more capable and dynamic company for our customers and employees. We complement each other, selling in adjacent markets with very little customer overlap, and that presents an interesting number of growth opportunities. We offer different technologies, expertise and capabilities. Yet, we share the same passion for solving product development challenges by discovering and applying innovations in adhesive technology."
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. Of the top adhesives manufacturers, H.B. Fuller is the only one singularly focused on adhesive and sealant technologies.
"We are passionate about being the best adhesives provider in the world, and we've been investing significantly over the last decade to make it a reality," said H.B. Fuller CEO Jim Owens. "With complementary adhesives expertise from Royal, we're able to make an even bigger impact on improving people's lives. Our customers will benefit from a broader portfolio and expanded development and production capabilities. We'll be a more capable and dynamic company with additional opportunities for the thousands of dedicated H.B. Fuller and Royal employees around the world. And, the acquisition accelerates our business strategy and positions us to exceed our 2020 targets."
H.B. Fuller also expects the combined businesses to deliver very strong cash flow to pay down debt at an accelerated pace. Owens adds, "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."
A broader range of highly specified adhesives technologies
With the addition of Royal, H.B. Fuller will be able to add more value to its customers in key markets that require highly specified adhesive technology. The combined companies' comprehensive suite of products support innovative product design with the potential to touch everything from our clothes, homes and workspaces to how we communicate and travel.
For example, the electronification of cars has revolutionized vehicles from mechanical machines to electronic devices, and it is changing how vehicles are manufactured and serviced. Together, H.B. Fuller and Royal now bring the whole package to OEMs - from electronics applications, interior trim, and interior and exterior lighting to powertrain under the hood and exterior structural bonding. Royal also brings rubber-to-metal bonding adhesives, a highly difficult application in the automotive industry.
H.B. Fuller has acquired Royal from affiliates of American Securities LLC, based in New York with an office in Shanghai.