Industry News

H.B. Fuller Establishes Strategic Presence in Middle East North Africa; Acquires Adhesive Business in Egypt

Published on 2008-09-05. Author : SpecialChem

ST. PAUL, Minn. -- H.B. Fuller Company announced that it has completed the acquisition of the majority of the assets of privately held Egymelt, a manufacturer and marketer of hot melt and specialty water-based adhesives headquartered in Cairo, Egypt.

"The acquisition of Egymelt establishes our geographic presence in one of the fastest growing regions in the world, further expanding our manufacturing footprint in a manner consistent with our five-year strategic plan," said Michele Volpi, president and chief executive officer. "This transaction will allow us to enhance our service offering to global accounts, improve the economics of existing sales to the region, and augment our current growth profile."

Egymelt currently employs 21 people and had net revenue in 2007 of approximately $4 million. The principle assets acquired include a manufacturing facility, equipment, and inventory. The results of this business will be included in the Company's European operating segment.

"This strategic acquisition is just the beginning of a much larger commitment to this fast growing region and builds upon the momentum created from the recently announced investments in Asia Pacific to drive geographic expansion. Plans are already in place and being executed upon to expand capacity and augment the capability of the business to more fully serve and support our key global account partners," commented Volpi.

About H.B. Fuller Company:

H.B. Fuller Company is a leading worldwide manufacturer and marketer of adhesives, sealants, paints and other specialty chemical products, with fiscal 2007 net revenue of $1.4 billion. Its common stock is traded on the New York Stock Exchange under the symbol FUL.

Forward-Looking Statements

Certain statements in this document may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, including but not limited to the following: the Company's ability to effectively integrate and operate acquired businesses; political and economic conditions; product demand; competitive products and pricing; costs of and savings from restructuring initiatives; geographic and product mix; availability and price of raw materials; the Company's relationships with its major customers and suppliers; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations; the impact of litigation and environmental matters; the effect of new accounting pronouncements and accounting charges and credits; and similar matters. Further information about the various risks and uncertainties can be found in the Company's SEC 10-Q filings of April 4, 2008 and July 2, 2008 and 10-K filing of January 30, 2008. All forward-looking information represents management's best judgment as of this date based on information currently available that in the future may prove to have been inaccurate. Additionally, the variety of products sold by the Company and the regions where the Company does business make it difficult to determine with certainty the increases or decreases in net revenue resulting from changes in the volume of products sold, currency impact, changes in product mix, and selling prices. However, management's best estimates of these changes as well as changes in other factors have been included.

Source: H.B. Fuller Company

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