H.B. Fuller $1.575 Billion Acquisition of Royal Adhesives & Sealants

Morgan Stanley & Co. LLC is acting as H.B. Fuller’s sole financial advisor in relation to this acquisition, and Faegre Baker Daniels LLP is acting as H.B. Fuller’s legal counsel. H.B. Fuller is acquiring Royal from affiliates of American Securities LLC, based in New York with an office in Shanghai.

H.B. Fuller Company (NYSE:FUL) announced today that it has signed an agreement to purchase Royal Adhesives & Sealants, a leading manufacturer of high-value specialty adhesives and sealants. This business consistently delivers industry-leading growth rates, EBITDA margins, and free cash flow that are expected to enhance H.B. Fuller’s position as a global leader in the adhesives industry.

Royal is expected to generate approximately $650 million in revenue and $138 million in adjusted EBITDA for H.B. Fuller’s fiscal year 2017. The company operates 19 manufacturing facilities in 5 countries, and employs approximately 1,500 people globally.

The agreed upon purchase price is $1,575 million, subject to customary adjustments. H.B. Fuller intends to finance the transaction through new debt financing.

Subject to customary closing conditions and regulatory approvals, the transaction is expected to close as soon as October of 2017.

FaegreBD corporate partners Morgan Burns (Picture) and Brandon Mason are leading a team that includes lawyers across the firm’s U.S., UK and China offices. Finance and restructuring partner Jim Pfau is leading the acquisition finance team.

 

Involved fees earner: Morgan Burns – Faegre Baker Daniels; Brandon Mason – Faegre Baker Daniels; Jim Pfau – Faegre Baker Daniels;

Law Firms: Faegre Baker Daniels;

Clients: H.B. Fuller Company;

 

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Author: Ambrogio Visconti