Ancora Holdings Group, shareholder of H.B. Fuller, has sent a letter to H.B. Fuller’s board of directors that enhances its proposal to acquire H.B. Fuller’s Building Adhesive Solutions (BAS) segment. In the letter, Ancora increased its offer to acquire H.B. Fuller’s BAS segment to between $1.2 billion and $1.4 billion in cash, an increase of its August proposal of $1.1 billion to $1.2 billion.

H.B. Fuller turned down the original proposal, stating that the offer materially undervalued the BAS business. In its most recent letter, Ancora argues that selling the segment would help H.B. Fuller reduce what Ancora claims is its leverage and balance sheet risk. The investment firm says its revised proposal values BAS at approximately 8.5 to 9.9 times LTM EBITDA and represents about 50% of H.B. Fuller’s current equity value, while BAS accounts for approximately 20% of consolidated revenue.