H.B. Fuller Co. recently announced it has signed an agreement to purchase Tonsan Adhesive Inc. The acquisition reportedly adds strong customer relationships in high-value, fast-growing engineering adhesives markets, state-of-the-art manufacturing facilities, and strong product and technology development capabilities.
Tonsan’s current annual revenue is about $100 million. H.B. Fuller will acquire 95% of the equity of Tonsan for cash consideration of Rmb 1.4 billion, or about $230 million. The four founding shareholders of Tonsan will remain with the company as a part of the leadership team and retain a minority equity interest.
“With this acquisition, we enter the fast-growing and profitable engineering adhesives market and strengthen our business in China,” said Jim Owens, president and CEO. “Together with Tonsan’s management, we will grow in China and expand this business around the globe in ways that were not possible when Tonsan was an independent Chinese company. This acquisition will launch H.B. Fuller into some of the most exciting and profitable segments of the adhesives industry.”