H.B. Fuller to purchase Adelcol
By Canadian Packaging staffAutomation Adecol Ind. Química Limitada H.B. Fuller Company
Acquisition to support company’s strategic growth plan in emerging markets.
ST. PAUL, Minn.—H.B. Fuller Company 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,” says H.B. Fuller president and chief executive officer Jim Owens. “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 60 days.
About H.B. Fuller
For 130 years, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. With fiscal 2016 net revenue of US$2.1 billion, H.B. Fuller works with customers in electronics, disposable hygiene, medical, transportation, clean energy, packaging, construction, woodworking, general industries and other consumer businesses. For more information, visit www.hbfuller.com.
As the largest manufacturer of industrial adhesives in Brazil, ADECOL has innovation in its DNA. One of its differentials is tailor-made work, developing specific formulations that generate a broad and flexible portfolio capable of serving numerous market niches. From automobile manufacturing to the packaging sector, the company produces 1.5 thousand tons of adhesives per month. Acting as a development laboratory, it adapts imported products and raw materials to the Latin America market. In 2016, it closed sales in the amount of approximately USD $35.7 million.
Image purchased via www.fotolia.com.