H.B. Fuller Acquires Apollo and Fourny

H.B. Fuller Co. has completed the acquisition of Apollo, the United Kingdom's leading independent manufacturer of liquid adhesives, coatings and primers for roofing, industrial and construction markets. Apollo, headquartered in Tamworth, England, is expected to generate approximately GBP 42 million (approximately USD 56.3 million) in revenue in 2022. Apollo will operate under H.B. Fuller's existing Construction Adhesives and Engineering Adhesives business units. The acquisition is expected to strengthen Fuller's position in high-value, high-margin key markets in the United Kingdom and Europe. Apollo manufactures and sells a range of commercial roofing, construction and adhesive solutions. According to H.B. Fuller, Apollo completes the Construction Adhesives operations in Europe and the most recent addition in early January 2022 of Fourny nv in Belgium, which generated EUR 8 million (approximately USD 9 million) in sales in 2021. The addition of these businesses will increase the company's share in significant construction markets in the United Kingdom and Europe and enable the expansion of its position in the roofing industry globally. Apollo's roofing technology includes a range of insulation and membrane adhesives as well as roofing and waterproofing primers. The construction solutions business supplies liquid adhesives, sealants and resins to construction markets. The industrial adhesives solutions business represents H.B. Fuller's Engineering Adhesives transportation product group with high-performance applications in caravan panel laminings, PVC door panels, insulation, furniture, textiles, aircraft seating and marine vessels. The combined purchase price for both acquisitions was USD 211 million, representing 12.3x EBITDA before synergies. Over the next three years, annual run-rate synergies of USD 8 million are expected to be realized, resulting in 8.4x EBITDA on a post-synergy basis. Jim Owens, President and Chief Executive Officer of H.B. Fuller, said "With these acquisitions, we have added deep market knowledge, strong customer relationships and a local manufacturing footprint that will enable H.B. Fuller to leverage access to regional capabilities in the United Kingdom and core Europe and benefit much more effectively from our CA technology portfolio." "Apollo's highly specialized commercial, construction and high-performance industrial adhesives will create new growth opportunities in our construction and transportation adhesive roofing operations in the United Kingdom and EIMEA. Fourny's leading position in the commercial roofing business will accelerate our growth in the region and allow for localization of products imported from the United States. Our companies share compatible cultures and growth strategies and both will integrate seamlessly into our Construction and Engineering Adhesives business units. Through this transaction we will jointly benefit from the synergies made possible to collaborate more efficiently and effectively with customers in roofing, building envelope and transportation." Source