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Adhesives manufacturer H.B. Fuller Company (NYSE: FUL), St. Paul, MN, has agreed to acquire Tonsan Adhesive Inc., an adhesives manufacturer based in China with annual sales of $100 million.
Tonsan offers silicone, epoxy, anaerobic and cyanoacrylate technologies that will facilitate H.B. Fuller's global entry into the segment. H.B. Fuller will acquire 95 percent of the equity of Tonsan for a cash consideration of Rmb 1.4 billion (US$230 million).
"With this acquisition, we enter the fast-growing and profitable engineering adhesives market and strengthen our business in China," said Jim Owens, H.B. Fuller's president and CEO. "This acquisition will launch H.B. Fuller into some of the most exciting and profitable segments of the adhesives industry."
H.B. Fuller also reported sales for the second quarter ended May 31 of $544 million, an increase of 4.8 percent year-over-year. Profit decreased 20.8 percent to $20.5 million.
Sales for the first half of 2014 were $1 billion, up 3.1 percent over the same period a year ago. Organic sales grew 3.3 percent. Profit fell 25 percent to $35.1 million.