H.B. Fuller to Sell Thickeners Business for $71 Million
St. Paul-based H.B. Fuller Co. on Tuesday announced that it has inked a deal to sell its surfactants, thickeners, and dispersants business to Tiarco LLC for $71 million.
The transaction is slated to close in the third quarter. Net proceeds from the sale will go toward debt reduction, H.B. Fuller officials said in a news release.
The surfactants, thickeners, and dispersants business unit was initially purchased as part of H.B. Fuller’s $1.6 billion acquisition of Royal Adhesives and Sealants. In the release, H.B. Fuller president and CEO Jim Owens described the unit as a “non-strategic, non-adhesive” business.
“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,” Owens said. “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.”
Based in Dalton, Ga., the business unit had sales of about $25 million in its 2018 fiscal year. Its products include thickeners used in carpet, floor coatings, and adhesive and caulk formulations, according to the company.
Tiarco, which is also based in Dalton, develops specialty chemicals for latex, lubricant, and water additive applications.