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H.B. Fuller to buy Tonsan Adhesive

Staff writer ▼ | June 27, 2014
H.B. Fuller Company has signed an agreement to purchase Tonsan Adhesive, Inc. Tonsan's current annual revenue is about $100 million with normalized EBITDA of just under $20 million.
H.B. Fuller
H.B. FullerH.B. Fuller Company has signed an agreement to purchase Tonsan Adhesive, Inc. Tonsan's current annual revenue is about $100 million with normalized EBITDA of just under $20 million.


Engineering adhesives make up approximately 30 percent of the global adhesives market, and the segment is expected to grow at rates significantly above the average for the adhesives industry. The market is characterized by technology formulations that prov

ide high-value solutions to address unique and demanding customer requirements. Tonsan, the largest independent engineering adhesives provider in China, offers silicone, epoxy, anaerobic and cyanoacrylate technologies that will facilitate H.B. Fuller's global entry into this important segment.

Tonsan develops, manufactures and sells a comprehensive range of engineering adhesive products for key durable assembly markets, such as transportation (automotive, rail and shipbuilding), machinery, photovoltaic, electronics and electrical appliances. H.B. Fuller's global infrastructure will enable the delivery of Tonsan's technologies and products around the world and specifically to key global customers.

H.B. Fuller will acquire 95 percent of the equity of Tonsan for cash consideration of Rmb 1.4 billion, or about $230 million. The four founding shareholders of Tonsan will remain with the company as a part of the leadership team and retain a minority equity interest.

Subject to customary closing conditions and regulatory approvals, the transaction is expected to close in the fourth quarter of this year.


 

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