H.B. Fuller, a global adhesives company, has completed the sale of its Flooring unit to Pacific Avenue Capital Partners (WA:CPAP). The transaction is expected to bring in proceeds of about $80 million.
In a strategic move to enhance its portfolio, H.B. Fuller has also agreed to acquire two medical adhesive technology companies, GEM and Medifill, for a combined total of €180 million.
As part of its reorganization efforts following the sale, H.B. Fuller will consolidate its building and construction segments into a single entity named the Building Adhesive Solutions unit.
This newly formed unit has reported approximately $850 million in net revenue and roughly $130 million in adjusted EBITDA for the fiscal year 2024.
The divestiture of the Flooring business is projected to decrease H.B. Fuller's annual revenue by about $160 million and its adjusted EBITDA by nearly $15 million. Investment banking firm Harris Williams provided advisory services for the sale of the Flooring unit.
In a separate announcement, H.B. Fuller stated that the combined operations of GEM and Medifill are anticipated to generate net revenue of €23 million and adjusted EBITDA of €11.5 million for the year 2024. These acquisitions will be incorporated within the company's Hygiene, Health & Consumable Adhesives unit.
The financial metrics of the acquisitions reveal that they will be completed at a pre-synergy EBITDA multiple of 15.5 times, with a post-synergy EBITDA multiple of 9.5 times anticipated within three years.
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