HB Fuller has issued a forceful statement reaffirming its strategy and acquisition-driven growth model, emphasizing execution, margin expansion, and balance sheet discipline while signaling openness to further deals.

 

“Our Board and management team value the feedback of all shareholders and regularly engage with and listen to a diverse range of perspectives shared with the Company, as we have with Ancora.”

 

The company said its leadership is “successfully executing” a plan to reposition the business into a faster-growing, higher-margin specialty adhesives player, pointing to a combination of operational performance and disciplined acquisitions as the core engine of value creation.

 

“Our team’s strong operational execution combined with a disciplined M&A strategy are how we will achieve our goals of greater than 20% adjusted EBITDA margins, low-teens ROIC and strong cash flow conversion.”

 

HB Fuller highlighted its track record of dealmaking in a fragmented global market, arguing that its acquisition strategy is designed not just to scale the business, but to rapidly improve profitability through integration and synergies.

 

“HB Fuller has a demonstrated track record of thoughtful and disciplined M&A.”

 

Since the start of 2023, the company has completed 13 acquisitions, which it says have driven meaningful EBITDA growth and margin expansion. It pointed to its U.K. portfolio as a key example: four businesses acquired since 2022, initially generating $30 million in adjusted EBITDA at roughly 13% margins, later more than doubling to over $60 million with margins exceeding 23% after synergy capture.

 

The company also emphasized continued balance sheet improvement alongside its acquisition strategy, noting steady deleveraging.

 

“We have been methodically deleveraging our balance sheet over the past several years, including reducing our net debt to adjusted EBITDA ratio to 3.1x at the end of the first quarter versus 3.5x in the same period last year.”

 

HB Fuller reiterated that it remains open to new value-creating opportunities, including potential transactions, but stressed discipline in evaluation and capital allocation.

 

“HB Fuller remains open to assessing any and all paths to value creation and we are committed to both extremely disciplined M&A and deleveraging.”

 

The company also addressed its disclosure regarding Advanced Medical Solutions Group plc (“AMS”), noting it was made under U.K. Takeover Code requirements and emphasizing that no binding offer is guaranteed.

 

“We are engaged in discussions with AMS but there can be no certainty that a binding offer will be made.”

 

Closing its statement, the adhesives giant said it expects continued dialogue with shareholders as it advances its long-term strategy.

 

“We look forward to continued constructive conversations with our shareholders regarding our strategy and opportunities for value creation.”