H.B. Fuller to sell Surfactants, Thickeners and Dispersants Business to Tiarco, LLC for USD 71 Million. Sale strengthens focus on highly specified adhesives and accelerates debt pay-down
H.B. Fuller Company (NYSE: FUL) announced today that it has signed a definitive agreement to sell its surfactants, thickeners and dispersants business to Tiarco, LLC, a wholly owned subsidiary of Textile Rubber and Chemical Company, Inc., for USD 71 million. H.B. Fuller will use the net proceeds from the sale for debt reduction. The transaction is expected to close in the third quarter.
“The business being sold is a non-strategic, non-adhesive business, which was purchased as part of the Royal acquisition,” said Jim Owens, president and chief executive officer of H.B. Fuller. “Our focus is to shift our portfolio to more highly specified adhesive solutions, and the surfactants, thickeners and dispersants business is not part of our strategic vision. By divesting this business, we are able to continue to accelerate paying down debt, focus on our core, and better position this business for future growth under the ownership of Tiarco, which specializes in this market. We are pleased that our colleagues will join a strong, established team at Tiarco.”
H.B. Fuller’s surfactants, thickeners and dispersants business, based in Dalton, Ga., had fiscal year 2018 sales of approximately USD 25 million and EBITDA of approximately USD 8 million. Its brands are well recognized, and the products include thickeners used in carpet, floor coatings, adhesive and caulk formulations, as well as surfactants used in detergents, wetting agents, and foam boosters in beauty and healthcare products.
Also based in Dalton, Ga., privately owned Tiarco develops specialty chemicals for a growing number of latex, lubricant and water treatment additive applications.
Since 1887, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. With fiscal 2018 net revenue of over USD 3 billion, H.B. Fuller’s commitment to innovation brings together people, products and processes that answer and solve some of the world’s biggest challenges. Our reliable, responsive service creates lasting, rewarding connections with customers in electronics, disposable hygiene, medical, transportation, aerospace, clean energy, packaging, construction, woodworking, general industries and other consumer businesses. And, our promise to our people connects them with opportunities to innovate and thrive.
A division of Textile Rubber & Chemical Co., Inc., Tiarco, LLC is a privately owned, specialty chemical manufacturer servicing latex, grease & lubricant, water treatment, and oil & gas applications with chemistries that deliver the highest levels of cost performance. The company is active globally with global sales offices and distribution facilities worldwide to better serve our customers.