H.B. Fuller Announces Updates for Royal Adhesives & Sealants Business Inontegrati

    H.B. Fuller has approved a detailed plan associated with the integration of the Royal and H.B. Fuller businesses. The is expected to deliver of $35 million in annual cost synergies by fiscal 2020.

    In addition to procurement savings, this plan includes savings resulting from the

    Closure of two small production facilities, 

    Consolidation of up to six other locations into three locations, and 

    Reduction of certain positions to support manufacturing and SG&A cost savings

    These actions are in line with the previously announced Royal integration and synergy plan and are in addition to planned revenue synergies.

    It will result in the pre-tax charges of $35 million to $40 million with after-tax cash costs of between $20 million to $24 million over the next three years.

    One of the Leading Global Adhesive Providers

    Jim Owens, H.B. Fuller president and chief executive officer said, “We are passionate about being the best adhesives provider in the world, and our customers are benefiting from the broader portfolio and expanded development and production capabilities obtained in the Royal acquisition”.

    He further elaborated that the integration of two businesses continues to progress very well. The actions taken by the company will further enhance their efficiency and will enable them to deliver the 2020 target of $600 million in EBITDA and corresponding debt pay down. 

      Royal Integration - A Three-Year Integration Project

    According to Jim, the acquisition will accelerate the company’s 2020 strategic objective to focus and grow in engineering adhesives and other highly specified market segments.

    In 2018, company expects to incur charges of approximately $15 million to $20 million ($10 million to $14 million in after-tax costs) related to these actions. These charges will be excluded from the company’s adjusted earnings per share.

    Jim added, “The Royal integration is a three-year project that will be completed in the best interest of customers and employees with a clear focus on creating value for our customers”.

    “Our goal for the integration of our two great companies are prioritized to protect and grow our business, retain our best employees, deliver our committed synergies and build a unified culture. We are off to a great start, and the actions that we are undertaking will make H.B Fuller a better and stronger company.”