H.B. Fuller Enters Into Joint Venture With Sekisui Chemical In Asia
February 28, 2005
H.B. Fuller Co. has announced that it has signed a definitive agreement to enter into joint ventures with Sekisui Chemical Co. in Japan and China. In Japan, Sekisui and H.B. Fuller will merge their Japanese adhesives businesses to create a new entity named Sekisui-Fuller Co., Ltd. Ownership in the new entity will initially be split between Sekisui and H.B. Fuller 60 percent and 40 percent, respectively. H.B. Fuller will retain an option, exercisable after two years, to increase its equity ownership to 50 percent. The new entity will be one of the largest industrial adhesives businesses in Japan with approximately $150 million in revenue and considerable strength in the assembly, packaging, and non-woven segments. Employees currently engaged in the adhesives operations of both companies will transition to Sekisui-Fuller. With respect to China, H.B. Fuller will sell a 20 percent equity interest in its China operations to Sekisui. Sekisui will retain an option, exercisable after two years, to increase its equity ownership to 30 percent. Partnering in China will allow the joint venture to leverage its relationships with Japanese companies operating in China to augment sales growth.