H.B. Fuller Company has signed a definitive agreement to sell its surfactants, thickeners and dispersants business to Tiarco, LLC, a wholly owned subsidiary of Textile Rubber and Chemical Company, Inc., for USD71 million. H.B. Fuller will use the net proceeds from the sale for debt reduction. The transaction is expected to close in the third quarter of 2019.
“The business being sold is a non-strategic, non-adhesive business, which was purchased as part of the Royal acquisition,” said Jim Owens, president and chief executive officer of H.B. Fuller. “Our focus is to shift our portfolio to more highly specified adhesive solutions, and the surfactants, thickeners and dispersants business is not part of our strategic vision. By divesting this business, we are able to continue to accelerate paying down debt, focus on our core, and better position this business for future growth under the ownership of Tiarco, which specializes in this market. We are pleased that our colleagues will join a strong, established team at Tiarco.”
H.B. Fuller’s surfactants, thickeners, and dispersants business, based in Dalton, Georgia, U.S.A., had fiscal year 2018 sales of approximately USD25 million and EBITDA of approximately USD8 million. Its brands are well recognized, and the products include thickeners used in carpet, floor coatings, adhesive and caulk formulations, as well as surfactants used in detergents, wetting agents, and foam boosters in beauty and healthcare products.
Also based in Dalton, privately owned Tiarco develops specialty chemicals for latex, lubricant, and water treatment additive applications.