ST. PAUL, Minn. - H.B. Fuller Company (NYSE: FUL), a global leader in adhesives with a market capitalization of $4.2 billion and a GOOD financial health score according to InvestingPro, announced today its plans to acquire two companies specializing in medical adhesive technologies, GEM S.r.l. and Medifill Ltd. The acquisition is part of H.B. Fuller's strategy to expand its presence in the medical adhesives market and build upon its existing portfolio.
GEM S.r.l., an Italian company, provides medical adhesives and application devices for over 80 internal medical uses, while Medifill Ltd., based in Ireland, formulates and produces medical-grade cyanoacrylate adhesives used in wound closure. Both companies are expected to contribute a combined net revenue of €23 million and adjusted EBITDA of €11.5 million for the year 2024. According to InvestingPro analysis, H.B. Fuller currently trades near its 52-week low, with an EV/EBITDA ratio of 10.4x and has maintained dividend payments for 54 consecutive years.
These acquisitions are aligned with H.B. Fuller's investments in the tissue adhesives market, which includes past purchases such as Cyberbond in 2016, Tissue Seal in 2021, and Adhezion Biomedical in 2023. The company aims to leverage its expertise in cyanoacrylate chemistry to further develop its Medical (TASE:PMCN) Adhesive Technologies (MAT) business.
H.B. Fuller's President and CEO, Celeste Mastin, commented on the strategic importance of these acquisitions, stating that they will enable the company to extend its global footprint in the medical adhesives sector. The transactions are expected to be completed at a pre-synergy EBITDA multiple of 15.5X, with a post-synergy EBITDA multiple of 9.5X based on a combined purchase price of €180 million.
The acquisitions will be integrated into H.B. Fuller's Hygiene, Health & Consumable (HHC) Adhesives Global Business Unit (GBU). The GEM acquisition is anticipated to close in February 2025, subject to customary closing conditions and regulatory approvals.
H.B. Fuller, founded in 1887 and with 2023 revenue of $3.5 billion, continues to enhance the quality, safety, and performance of everyday products with its functional coatings, adhesives, and sealants. The company maintains a solid gross profit margin of 30.5% and has raised its dividend for 32 consecutive years. For deeper insights into H.B. Fuller's financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of the company's performance metrics and future outlook. This announcement is based on a press release statement.
In other recent news, H.B. Fuller has seen a series of significant developments. The company announced Teresa J. Rasmussen will succeed Lee R. Mitau as Chair of the Board of Directors in January 2025. Rasmussen, currently the president and CEO of Thrivent, is expected to steer H.B. Fuller into new high-growth markets. In addition, the company reported a 6% rise in adjusted EBITDA to $165 million in the third quarter of 2024, with robust growth in its Construction Adhesives segment.
The company also completed the acquisition of HS Butyl Limited, anticipating annualized sales of about $23 million. Furthermore, H.B. Fuller updated its full-year guidance, projecting more conservative growth and adjusted EPS figures. The revised 2024 guidance includes net revenue growth of approximately 2%, adjusted EBITDA between $610 million and $620 million, and adjusted diluted EPS projected to be between $4.10 and $4.20.
Lastly, H.B. Fuller announced the retirement of Traci L. Jensen, the company's Executive Vice President and Chief Administrative Officer, effective November 2024. A successor is expected to be announced in the coming months. These recent developments mark a pivotal time in H.B. Fuller's operations and strategic direction.
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