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H.B. Fuller acquires specialty adhesives firm ND Industries

EditorEmilio Ghigini
Published 20/05/2024, 15:10
FUL
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ST. PAUL, Minn. - H.B. Fuller Company (NYSE:FUL), known as the world's largest pure-play adhesives company, has announced the acquisition of ND Industries Inc., a prominent provider of specialty adhesives and fastener solutions. ND Industries is recognized for serving various sectors including automotive, electronics, and aerospace with its locking and sealing products.

The transaction is aimed at advancing H.B. Fuller's growth in high-margin market segments within the coatings, adhesives, sealants, and elastomer (CASE) industry. The acquisition brings ND Industries’ Vibra-Tite® brand into H.B. Fuller’s product lineup, complementing its existing range of epoxy, cyanoacrylate, UV curable, and anaerobic adhesives.

Celeste Mastin, President and CEO of H.B. Fuller, remarked on the strategic fit of ND Industries' offerings with their current market segments. She highlighted the combined benefits of adhesives and mechanical fasteners in demanding applications as a key advantage for customers.

ND Industries, a family-owned business for several decades, boasts a comprehensive portfolio in the pre-applied fastener industry. The company also operates a network of processing centers that provide engineered coating application services, contributing to the safety and reliability of fastener assemblies.

The Michigan-based ND Industries has a strong global presence with facilities in the U.S. and Asia, as well as partners worldwide. The company reported approximately $70 million in revenue in fiscal 2023. Post-acquisition, ND Industries will be integrated into H.B. Fuller's Engineering Adhesives global business unit, which includes five U.S. locations and 300 employees.

Richard Wallace, chairman of ND Industries Inc., expressed confidence in the shared values and customer collaboration between the two companies, which have been coordinating closely for months to ensure a seamless integration.

H.B. Fuller, with a history dating back to 1887 and 2023 revenue of $3.5 billion, serves customers in over 30 market segments across more than 140 countries. ND Industries is also known for its commitment to quality and innovation, supported by in-house research and development and an accredited A2LA Technologies Group.

This article is based on a press release statement.

InvestingPro Insights

H.B. Fuller Company (NYSE:FUL) stands as a testament to stability and growth within the adhesive industry, as reflected by its commitment to increasing shareholder value through consistent dividend payments. An impressive track record of maintaining dividend payments for 54 consecutive years showcases the company's financial resilience and dedication to its investors. This is particularly notable in today's economic environment, where many companies have struggled to sustain such long-term commitments.

InvestingPro data further illuminates the company's financial health and market position. With a market capitalization of $4.42 billion and a forward P/E ratio of 25.28, H.B. Fuller appears to be valued reasonably in relation to its earnings. Additionally, the company's revenue for the last twelve months as of Q1 2024 stands at $3.512 billion, despite a slight decline in revenue growth during the same period. Investors might also take note of the company's gross profit margin of nearly 30%, indicating a strong ability to convert sales into profit.

For those considering an investment in H.B. Fuller, the "InvestingPro Tips" highlight that analysts predict the company will be profitable this year, which is corroborated by its profitability over the last twelve months. Moreover, the stock is trading near its 52-week high, with a price 96.26% of that peak, suggesting investor confidence in the company's prospects.

For more detailed analysis and additional "InvestingPro Tips", such as the company's low price volatility and the recent revisions by analysts on the company's earnings expectations, potential investors can explore the comprehensive resources available at InvestingPro. With the use of the coupon code PRONEWS24, new subscribers can enjoy an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 10 exclusive "InvestingPro Tips" for H.B. Fuller.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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