HB Fuller has signed an agreement to purchase Tonsan
Adhesive, officials with both companies confirmed on
With this acquisition, HB Fuller will add strong customer
relationships in fast-growing engineering adhesives markets,
new manufacturing facilities
, and strong product and
With a solid record of growth and proven technical expertise,
Tonsan's current annual revenue is about $100 million with
normalized EBITDA of just under $20 million.
Engineering adhesives make up approximately 30% of the global
adhesives market, and the segment is expected to grow at
rates significantly above the average for the adhesives
industry, according to HB Fuller officials.
The market is characterized by technology
provide high-value solutions to address unique and demanding
customer requirements. Tonsan, the largest independent
engineering adhesives provider in China, offers silicone,
epoxy, anaerobic and cyanoacrylate technologies that will
facilitate HB Fuller's global entry into this important
Tonsan develops, manufactures and sells a comprehensive range
of engineering adhesive products for key durable assembly
markets, such as transportation (automotive, rail and
shipbuilding), machinery, photovoltaic, electronics and
electrical appliances. HB Fuller's global infrastructure will
enable the delivery of Tonsan's technologies and products
around the world and specifically to key global customers.
HB Fuller will acquire 95% of the equity of Tonsan for cash
consideration of about $230 million. The four founding
shareholders of Tonsan will remain with the company as a part
of the leadership team and retain a minority equity interest.
"With this acquisition, we enter the fast-growing and
profitable engineering adhesives market and strengthen our
business in China," said HB Fuller CEO Jim Owens. "Together
with Tonsan's management, we will grow in China and expand
this business around the globe in ways that were not possible
when Tonsan was an independent Chinese company. This
acquisition will launch HB Fuller into some of the most
exciting and profitable segments of the adhesives industry."
Subject to customary closing conditions and regulatory
approvals, the transaction is expected to close in the fourth
quarter of this year.