H.B. Fuller Divests Flooring Unit, Acquires Medical Adhesive Companies

Global adhesive company H.B. Fuller has completed the sale of its Flooring Division to Pacific Avenue Capital Partners. The transaction is expected to generate approximately $80 million in revenue.
In a strategic move to strengthen its portfolio, H.B. Fuller has agreed to acquire two medical adhesive technology companies, GEM and Medifill, for a total of €180 million.
Following the sale, H.B. Fuller will consolidate its building and construction segments into a single unit named Building Adhesive Solutions as part of its restructuring efforts.
This newly formed unit is expected to report approximately $850 million in net revenue and around $130 million in adjusted EBITDA for the fiscal year 2024.
The divestiture of the Flooring business is anticipated to reduce H.B. Fuller's annual revenue by about $160 million and adjusted EBITDA by approximately $15 million. Investment banking firm Harris Williams provided advisory services for the sale of the Flooring Division.
In a separate statement, H.B. Fuller indicated that the combined operations of GEM and Medifill are expected to achieve €23 million in net revenue and €11.5 million in adjusted EBITDA for 2024. These acquisitions will be incorporated into the company's Hygiene, Health & Consumable Adhesives division.
The financial metrics for the acquisitions indicate a pre-synergy EBITDA multiple of 15.5x, with an expectation that the post-synergy EBITDA multiple will drop to 9.5x within three years.