H.B. Fuller acquires Wisdom

Founded in 1875, Wisdom has been privately owned and operated by five consecutive generations of the Wisdom family and is headquartered in Elgin, Illinois. For 130 years, H.B. Fuller has been a global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products. It has customers in electronics, disposable hygiene, medical, transportation, clean energy, packaging, construction, woodworking, general industries and other consumer businesses.

The acquisition value of 122 million USD is expected to generate annual run rate synergies of approximately six million USD, starting in 2018, which would make the purchase price multiple equal to approximately seven times Wisdom's fiscal 2016 EBITDA on a post-synergy basis. H.B. Fuller expects the transaction to be modestly accretive to earnings in the first year. The business will be included in H.B. Fuller's Americas Adhesives operating segment.

Jim Owens, H.B. Fuller president and CEO, said the acquisition will strengthen the company’s position in this market segment within the Americas adhesive business, as well as the delivery of its 2020 strategic plan commitments.

‘Wisdom's highly successful go-to-market strategy, based on a focused product line, ultra-fast delivery and virtual service, will complement H.B. Fuller's full value solutions,’ said Owens.

‘The combination of H.B. Fuller and Wisdom provides significant cost synergy opportunities combined with some growth opportunities related to the complementary operating model and customer bases of the two companies. This acquisition will enhance and strengthen the delivery of our 2020 strategic plan commitments.’