H.B. Fuller Company (NYSE: FUL), St, Paul, MN, has agreed to purchase the global industrial adhesives business of Forbo Group for CHF 370 million (US$395.2 million). The business to be acquired represents about 80 percent (by revenue) of the Forbo Bonding Systems division of Forbo Group, Zug, Switzerland.

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The business is expected to generate $580 million in revenue for the fiscal year ending Dec. 31, 2011. The business operates 17 manufacturing facilities in 10 countries, and employs more than 1,100 people globally.

\”Upon closing of the transaction, H.B. Fuller will be a $2 billion company, focused on attractive segments of the industrial adhesives market,\” said H.B. Fuller President and CEO Jim Owens. \”The acquired Forbo business will fortify our presence in Europe and enhance the transformation of our own business in that region. It will increase our business in China by about 50 percent, and broadly strengthen our capability in our core markets. In addition, we will enhance our leadership position in North America, gain proprietary technology and become one of a handful of manufacturers capable of producing VAE emulsions.\”