United States. U.S. chemical company H.B. Fuller announced the sale of its surfactants, thickeners and dispersants business to Tiarco, LLC, a subsidiary of Textile Rubber and Chemical Company, Inc., for $71 million, and said it will use the net proceeds from the sale for debt reduction.
The decision to complete this transaction, which is expected to be finalized in the third quarter, is made to reinforce the company's focus on highly targeted adhesives.
"The business being sold is a non-strategic, non-adhesive business that was purchased as part of the Royal acquisition," said Jim Owens, president and chief executive officer of H.B. Fuller.
"Our goal 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 can continue to accelerate debt repayment, 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 are joining a strong and established team at Tiarco."
H.B. Fuller's surfactants, thickeners and dispersants business, headquartered in Dalton, Georgia, had fiscal 2018 sales of approximately $25 million and EBITDA of approximately $8 million.
The products of this business include thickeners used in carpets, floor coverings, adhesives and putty formulations, as well as surfactants used in detergents, wetting agents and foam reinforcements in beauty and health care products.
