H.B. Fuller Co. announced that it is implementing an additional strategic restructuring to expedite the integration of recently acquired businesses and drive overall operational improvements. The company reports that the restructuring actions, prompted by the recent acquisition of Beardow Adams, will accelerate profitable growth in many of its core end markets, while streamlining operations and enhancing customer service. As part of its standard acquisition integration process and in conjunction with ongoing efforts to review its manufacturing footprint, H.B. Fuller identified several changes within its manufacturing and supply chain operations that will result in the closure of three manufacturing facilities and the redistribution of production across the network.
“We are executing our strategic plan to improve our business model, our portfolio, and our customer experience, augmented by our position as the acquirer of choice in the adhesives industry,” said Celeste Mastin, president and CEO. “Acquisitions enable us to expand our market share and network, bring in new talent and technology, and provide a new framework from which to optimize production efficiency.”
The actions will be initiated in the third quarter of fiscal year 2023; the company expects they will be completed in fiscal year 2026. Restructuring costs of approximately $20 million (pre-tax) will be spread across the next several fiscal quarters as these measures are implemented. Once completed, the restructuring is expected to result in on-going annualized cost savings of approximately $20 million (pre-tax). The company reports that the majority of the restructuring charges and cost savings are expected to be recognized in fiscal year 2024.
Learn more about H.B. Fuller at www.hbfuller.com.