H.B. Fuller has agreed to sell its Central American paints
business to Compania Global de Pinturas S.A., (Pintuco), a
company of Grupo Mundial, the US-based specialty chemicals
company said on Tuesday.
H.B. Fuller's Central American paints business has a leading
market position in the region with strong brands, a broad
offering of quality product lines and a local manufacturing
presence, the company says.
Sales are made through multiple distribution channels,
including retail distributors and the company's network of
retail stores located throughout Central America.
Its brands are recognized, and its products are used in
residential and commercial applications, including
architectural, marine and highway safety.
"This business has a strong market position and excellent
leadership," said Jim Owens, CEO of H.B. Fuller.
"Our strategic vision is to be the best adhesives company in
the world, and the paints business is not, therefore, core to
our strategic plan. Our divestiture enables this excellent
business to be part of a company with a strategic position in
the paint industry."
The Central American paints business began operations in
Costa Rica in 1949 and has been in the H.B. Fuller portfolio
The business being sold includes nearly 800 employees who
work across Central America and production plants and
laboratories in Costa Rica, Honduras and Panama.
Based in Medellin, Colombia, Pintuco operates in the paints
industry in the Andean region, with a presence in Colombia,
Venezuela, Ecuador, Costa Rica, Panama and the Caribbean.
Grupo Mundial operates 53 companies in 12 countries and
exports products to 25 countries. Group sales for 2011 were
$1.073 billion. Grupo Mundial was founded in 1921 and has six
company divisions: paints, chemicals, general wholesaler, water
pipes, inks and packaging.
The transaction's closing is subject to certain conditions,
including the notification of government and regulatory
authorities and should be completed within 60 days, officials
The purchase price to be paid for the business is $120
In 2011, the business to be sold had revenue of $113.5
million and generated EBITDA of $13.3 million, before
allocation of corporate expenses.