H.B. Fuller Company (NYSE: FUL), the largest pureplay adhesives provider in the world, announced today that it has completed two strategic acquisitions that will accelerate transformation of the company’s portfolio toward more highly specified applications and enhance diversification of H.B. Fuller’s Construction Adhesives (CA) business.
The company has acquired Adhezion Biomedical, a privately held U.S. medical adhesives business with customers in 40 countries, more than 35 global certifications and 105 patents. The acquisition of Adhezion, which manufactures and distributes advanced wound closure and infection prevention adhesives, builds a platform of scale for H.B. Fuller in the topical skin bonding market, adding to capabilities attained from its purchase of Tissue Seal in 2021 and providing vertically integrated adhesive manufacturing and packaging capability. The acquisition decisively positions the company for expansion in the medical adhesives industry and creates a solid, unique platform from which to scale and innovate in the highly profitable, $8 billion healthcare adhesives space.1
Also in June, H.B. Fuller acquired XCHEM International, an adhesives manufacturer in the United Arab Emirates that offers a wide range of specialty adhesives and coatings for industrial and infrastructure applications in the fast-growing construction markets of the Middle East and Northern Africa. The acquisition provides H.B. Fuller’s CA global business unit with its first manufacturing presence outside the U.S. for its flagship Foster® brand; broadens CA’s portfolio of highly specified applications; and diversifies CA’s portfolio toward both non-U.S. and infrastructure-oriented markets.
“Our aspiration is to supply our customers with drops, not trucks, of material,” said H.B. Fuller President and CEO Celeste Mastin. “As we further penetrate highly specified applications through new technologies and reduce the amount of material our customers need through innovation in existing, higher volume segments, we create value for our customers and investors. Although small, these two acquisitions represent outstanding platforms to capitalize upon and expand our portfolio into high-growth, highly specified markets, consistent with our strategy.”
The two acquisitions will contribute approximately $17 million to revenue and $2 million to adjusted EBITDA in fiscal 2023 and, inclusive of synergies, are expected to contribute an estimated $60 million in revenue and $15 million in adjusted EBITDA in fiscal 2025.
Adhezion Biomedical will operate within H.B. Fuller’s Hygiene, Health, and Consumable Adhesives global business unit; XCHEM International will operate within H.B. Fuller’s CA global business unit.
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