H.B. Fuller To Buy Royal Adhesives & Sealants For $1.575 Bln

(RTTNews) - H.B. Fuller Company (FUL) said that it has signed an agreement to purchase Royal Adhesives & Sealants, a manufacturer of high-value specialty adhesives and sealants, for $1.575 billion, subject to customary adjustments. H.B. Fuller intends to finance the transaction through new debt financing.

"Upon closing the transaction, H.B. Fuller will be a company with nearly $2.9 billion in revenue, focused on profitable growth in attractive engineering, durable assembly, and construction adhesives markets," said H.B. Fuller President and Chief Executive Officer Jim Owens.

Royal is expected to generate approximately $650 million in revenue and $138 million in adjusted EBITDA for H.B. Fuller's fiscal year 2017. The company operates 19 manufacturing facilities in 5 countries, and employs approximately 1,500 people globally.

H.B. Fuller has previously announced specific financial goals for organic growth, cash flow and EBITDA margin improvement in the company's 2020 strategic plan and believes this acquisition will support acceleration and over performance relative to these objectives.

Subject to customary closing conditions and regulatory approvals, the transaction is expected to close as soon as October of 2017.