H.B. Fuller Divests Flooring Business
H.B. Fuller Co. announced it will reorganize the building and construction segments of its portfolio to create a faster growing solutions business with a complementary customer base across the architectural and infrastructure markets. The reorganization includes the sale of the Flooring business as well as combining the company’s Insulated Glass, Woodworking, and Composite segments, currently part of Engineering Adhesives, with its Roofing and Building Envelope and Infrastructure (BE&I) segments to form a newly named Global Business Unit (GBU): Building Adhesive Solutions (BAS), effective with the start of H.B. Fuller’s 2025 fiscal year.
The company reports that BAS, as combined, generated approximately $850 million in net revenue and approximately $130 million in adjusted EBITDA in fiscal year 2024. BAS features a larger scale GBU designed to capture growth in the burgeoning global infrastructure market, including energy, utilities, and data management applications, and capitalize on H.B. Fuller’s existing position in the global architectural market. BAS replaces H.B. Fuller’s existing Construction Adhesives GBU and will be led by Shahbaz (Boz) Malik, senior vice president, BAS.
H.B. Fuller also announced that it has sold its Flooring business to Pacific Avenue Capital Partners, a leading private equity firm based in Los Angeles, California.
“This move is consistent with our strategy to drive our portfolio and capital allocation to the highest margin, fastest growing segments of the $80 billion global adhesives industry,” said H.B. Fuller President and CEO Celeste Mastin. “With Pacific Avenue Capital Partners, we have found the right home for our talented Flooring team and brand-recognized products.”
Proceeds from the sale are expected to be $80 million, and the divestiture will result in a reduction in annual revenue of approximately $160 million and adjusted EBITDA of approximately $15 million going forward. The acquisition closed on Dec. 2, 2024, the second day of H.B. Fuller’s 2025 fiscal year.
Additional information about H.B. Fuller is available at www.hbfuller.com.
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