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Tiarco buys part of HB Fuller's business
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HB Fuller Company is selling its surfactants, thickeners and dispersants business to Tiarco, a wholly owned subsidiary of Textile Rubber and Chemical Company, for $71 million. HB Fuller will use the funds from the sale for debt reduction. The two have signed a definitive agreement in this connection. The transaction is expected to close in the third quarter.
"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 HB 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 specialises in this market. We are pleased that our colleagues will join a strong, established team at Tiarco."
HB Fuller's surfactants, thickeners and dispersants business, based in Dalton, Ga, had fiscal year 2018 sales of approximately $25 million and EBITDA of approximately $8 million. Its brands are well recognised, 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.
Privately owned Tiarco, also based in Dalton, Ga, develops specialty chemicals for latex, lubricant and water treatment additive applications. (SV)