H.B. Fuller acquires UK-based HS Butyl Limited

ST. PAUL, Minn. - H.B. Fuller Company (NYSE: FUL), known as the largest pureplay adhesives firm globally, has announced the acquisition of HS Butyl Limited, the leading manufacturer and distributor of butyl tapes in the UK. The move is aimed at bolstering H.B. Fuller's position in the global specialty construction tapes market and expanding its reach into the $15 billion waterproofing tape market, a sector where HS Butyl has established a significant footprint.

HS Butyl, a family-owned enterprise since 1964, specializes in creating butyl tapes that ensure strong, permanent, and watertight seals across various industries, including construction, infrastructure, automotive, and renewable energy. The acquisition is seen as a strategic continuation of H.B. Fuller's growth plan, particularly after its 2022 purchase of GSSI Sealants Inc., which had already expanded its technology platform for butyl tapes.

According to H.B. Fuller President and CEO Celeste Mastin, this acquisition not only complements the company's existing product line but also presents new opportunities in the engineering adhesives market.

Mastin emphasized the potential for delivering innovative solutions across high-value applications, leveraging H.B. Fuller's global distribution network to grow HS Butyl's technologies, especially in Europe where the market for waterproofing tapes is significantly larger than in North America.

With over $23 million in annual sales, HS Butyl's expertise and international presence in over 50 countries will now contribute to H.B. Fuller's Construction Adhesives global business unit. This strategic move is expected to play a key role in achieving H.B. Fuller's target of a 20 percent adjusted EBITDA margin in the next three to five years.

H.B. Fuller, with a heritage dating back to 1887, reported a revenue of $3.5 billion in 2023 and operates with a team of over 7,000 members across more than 140 countries. The acquisition is based on the company's forward-looking statements and is subject to various risks and uncertainties that could affect future results.

This article is based on a press release statement from H.B. Fuller Company.

In other recent news, H.B. Fuller reported a robust Q2 2024, with organic sales growth exceeding 3% and adjusted EBITDA increasing by 10% year-on-year to $157 million. The company also successfully acquired ND Industries, expanding its market presence in the fastener locking solutions segment.

Despite this, H.B. Fuller experienced a lower than expected revenue from ND Industries, falling short by $2 million. In response to these developments, the company has updated its fiscal 2024 guidance, anticipating net revenue growth of 2% to 4%, and adjusted EBITDA between $620 million and $640 million. H.B. Fuller has also reinitiated its share repurchase program, buying back 182,000 shares.

On a final note, the company expects an adjusted EBITDA margin greater than 20% in the next three to five years, and full-year adjusted diluted earnings per share are projected to be between $4.20 and $4.45.

InvestingPro Insights

In light of H.B. Fuller Company's (NYSE: FUL) recent strategic acquisition of HS Butyl Limited, the company's financial metrics and market performance offer a deeper insight into its investment potential. According to InvestingPro data, H.B. Fuller currently holds a market capitalization of approximately $4.25 billion, with a P/E ratio of 25.79, indicating investor valuation of the company's earnings. Despite a recent price dip with a one-week total return of -9.15%, H.B. Fuller has shown resilience with a one-year price total return of 8.99%, reflecting longer-term investor confidence.

InvestingPro Tips for H.B. Fuller highlight that the company has raised its dividend for an impressive 31 consecutive years, demonstrating a consistent commitment to returning value to shareholders. Moreover, analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's financial performance. For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, which can be accessed for H.B. Fuller at https://www.investing.com/pro/FUL.

The company's strategic acquisitions, combined with its financial strength and analysts' optimistic revisions, position H.B. Fuller to potentially capitalize on the growing specialty construction tapes market. These insights, drawn from real-time data and expert analysis, can help investors make more informed decisions.

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