H.B. Fuller Co. recently announced it has approved a detailed plan associated with the integration of the Royal and H.B. Fuller businesses that is expected to result in the delivery of $35 million in annual cost synergies by fiscal 2020.
In addition to procurement savings, this plan reportedly includes savings resulting from the closure of two small production facilities, the consolidation of up to six other locations into three locations, and the reduction of certain positions to support manufacturing and selling, general and administrative expenses cost savings. These actions are reportedly in line with the previously announced Royal integration and synergy plan, and are in addition to planned revenue synergies.
“We are passionate about being the best adhesives provider in the world, and our customers are benefiting from the broader portfolio and expanded development and production capabilities obtained in the Royal acquisition,” said Jim Owens, president and CEO. “The integration of our two businesses continues to progress very well, and every day we gain more confidence in our ability to deliver the synergies that we committed. The actions we are announcing will further enhance our efficiency and enable us to deliver the 2020 target of $600 million in EBITDA and corresponding debt paydown.”
Top 5 News that Sticks for March 11-17
1. H.B. Fuller Announces Integration Related Restructuring Charges