H.B. Fuller rejects $1.2 billion BAS offer

• H.B. Fuller rejected Ancora’s unsolicited proposal to acquire its Building Adhesives Solutions business for $1.1 billion–$1.2 billion.
• H.B. Fuller stated that the offer undervalues BAS and does not reflect its expected future growth potential.
• The company said it will continue focusing on the AMS acquisition, Project Quantum Leap, and debt reduction plans.

H.B. Fuller (NYSE:FUL) announced that its board rejected Ancora’s unsolicited, non-binding proposal to acquire its Building Adhesives Solutions business, stating that the offer undervalues the segment.

Ancora’s proposal valued the BAS business at $1.1 billion to $1.2 billion, while H.B. Fuller stated that the offer was below precedent transactions and did not reflect the segment’s future value.

H.B. Fuller stated that BAS delivered 6% organic growth year-over-year and 10% EBITDA improvement in the second quarter, while the company also highlighted potential operating challenges from separating the business from shared manufacturing operations.

The company stated that it believes BAS will continue supporting earnings growth.

H.B. Fuller said it expects Project Quantum Leap and footprint improvements to strengthen BAS performance, while management plans to reduce leverage back to its target range of 2.5x to 3.0x within two years after completing the Advanced Medical Solutions transaction.

H.B. Fuller produces adhesives and specialty materials across industrial, construction, and consumer markets, with the company stating that it will continue reviewing portfolio options to support shareholder value.