H.B. Fuller has finalized its acquisition of Royal Adhesives & Sealants for 1.575 billion USD, positioning the adhesives specialist as a ‘more capable and dynamic company’.
The deal to acquire Royal Adhesives & Sealants was announced earlier this year, deepening its expertise in specialty and high-value applications used in a range of sectors, including electronics, hygiene, medical, transportation, clean energy, construction and more.
The acquisition expands H.B. Fuller’s product offering in engineering, durable assembly and construction adhesives. It makes H.B. Fuller the world’s largest supplier of adhesives for insulating glass and commercial roofing applications.
H.B. Fuller CEO Jim Owens commented: ‘We are passionate about being the best adhesives provider in the world, and we’ve been investing significantly over the last decade to make it a reality. With complementary adhesives expertise from Royal, we’re able to make an even bigger impact on improving people’s lives.
‘Our customers will benefit from a broader portfolio and expanded development and production capabilities. We’ll be a more capable and dynamic company with additional opportunities for the thousands of dedicated H.B. Fuller and Royal employees around the world. And, the acquisition accelerates our business strategy and positions us to exceed our 2020 targets.’
With the addition of Royal, H.B. Fuller stated that it will be able to add more value to its customers in key markets that require highly specified adhesive technology. The combined companies’ comprehensive suite of products support innovative product design with the potential to touch everything from clothes, homes and workspaces, to communication and travel, according to H.B. Fuller. For example, the electronification of cars has changed vehicles from mechanical machines to electronic devices, so changing how vehicles are manufactured and serviced. Together, H.B. Fuller and Royal offer options for electronics applications, interior trim, and interior and exterior lighting, to powertrain under the hood and exterior structural bonding. Royal also offers rubber-to-metal bonding adhesives. From engineered wood applications and panel lamination, to advancements in insulating glass, H.B. Fuller now has a complete portfolio of durable assembly adhesives. The acquisition of Royal’s Kömmerling business, an established provider of insulating glass and other high-value adhesive and sealant applications for manufacturers of durable goods, will enable H.B. Fuller to leverage its well-established sales channels to deliver this technology to a broader range of customers in North America and to accelerate the introduction of insulating glass sealant innovations in China and the Asia-Pacific region. The acquisition also nearly doubles the size of H.B. Fuller’s construction adhesives portfolio.
Ted Clark, Royal Adhesives & Sealants CEO, said: ‘This is an exciting step for Royal and our network of brands. Combining these two businesses creates a more capable and dynamic company for our customers and employees. We complement each other, selling in adjacent markets with very little customer overlap, and that presents an interesting number of growth opportunities. We offer different technologies, expertise and capabilities. Yet, we share the same passion for solving product development challenges by discovering and applying innovations in adhesive technology.’