H.B. Fuller Company (NYSE:FUL) has signed an agreement to purchase adhesives company, Adecol Ind. Química, Limitada, a highly respected manufacturer of quality adhesive technologies in Brazil.
Adecol works closely with customers to develop innovative, high-quality hot melt, reactive and polymer-based adhesive solutions for customers in the packaging, converting and assembly markets. Based in Guarulhos, Brazil, this business generated nearly USD $40 million in revenue for the 2016 fiscal year. The company has agreed to pay 8X 2016 EBITDA for the business.
“With this acquisition, we will further enhance our business in Brazil by partnering with customers to produce new and better consumer and durable goods products in this dynamic region,” said Jim Owens, president and CEO, H.B. Fuller. “H.B. Fuller has a strategic focus on growing our presence in emerging markets, and the Adecol team has deep market knowledge and local manufacturing capabilities that will enable us to partner more closely with customers and to grow in Brazil and across Latin America. We look forward to welcoming the employees of Adecol to the H.B. Fuller team.”
The company expects to finalize the transaction in the next 30-60 days.