H.B. Fuller Sells Flooring Business for $80M
Vadnais Heights-based adhesives maker H.B. Fuller is selling one business unit and buying two foreign companies.
On Monday, the Minnesota company announced that it sold its flooring business for about $80 million to Pacific Avenue Capital Partners, a Los Angeles private equity firm. H.B. Fuller, which employed around 7,200 people around the world as of December 2023, said the deal will result in the loss of about $160 million in annual revenue.
It’s not immediately clear how many of the company’s employees work for the flooring division. In a news release, president and CEO Celeste Mastin said that Pacific Avenue Capital Partners is the “the right home for our talented Flooring team and brand-recognized product.”
The sale of the flooring unit, which closed on Monday, is part of a larger reorganization plan at H.B. Fuller. As part of that plan, the company is moving its glass, woodworking, and composite segments under a new “building adhesives solutions” unit.
Meanwhile, H.B. Fuller leaders expect the acquisition of two European medical adhesive companies to make up for loss of revenue from the sale. In a separate announcement, the company said that it has reached a deal to buy Ireland-based Medifill Ltd. and Italy-based GEM S.r.l.
H.B. Fuller didn’t disclose how much it’s paying for the two companies. However, the Minnesota company noted that when combined, the two acquired firms are expected to generate about 23 million euros in revenue this year, or about $24.3 million.
Paired with prior acquisitions in the medical adhesives space, H.B. Fuller leaders believe the company has “extended our penetration into a global footprint,” CEO Mastin said in a statement. The GEM acquisition is expected to close in February. The Medifill deal has closed already.
