Beardow Adams Acquisition Catalyzes Additional Network Optimization Opportunities
H.B. Fuller Company (NYSE: FUL) today announced that it was implementing an additional strategic restructuring to expedite the integration of recently acquired businesses and drive overall operational improvements.
The restructuring actions, prompted by the recent acquisition of Beardow Adams, will accelerate profitable growth in many of our core end markets, while streamlining operations and enhancing customer service. As part of our standard acquisition integration process, and in conjunction with ongoing efforts to review our manufacturing footprint, several opportunities were identified to further optimize our global manufacturing and supply chain operations. This will result in the closure of three manufacturing facilities and the redistribution of production across the network to improve overall efficiency.
“We are executing our strategic plan to improve our business model, our portfolio, and our customer experience, augmented by our position as the acquirer of choice in the adhesives industry,” said Celeste Mastin, president and CEO. “Acquisitions enable us to expand our market share and network, bring in new talent and technology, and provide a new framework from which to optimize production efficiency.”
These actions will be initiated in the third quarter of fiscal year 2023 and are expected to be completed in fiscal year 2026. Restructuring costs of approximately $20 million (pre-tax) will be spread across the next several fiscal quarters as these measures are implemented. Once completed, this restructuring is expected to result in on-going annualized cost savings of approximately $20 million (pre-tax). The majority of the restructuring charges and cost savings are expected to be recognized in fiscal year 2024.
About H.B. Fuller
Since 1887, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives and sealants to improve products and lives. With fiscal 2022 net revenue of $3.75 billion, H.B. Fuller’s commitment to innovation and sustainable adhesive solutions brings together people, products and processes that answer and solve some of the world's biggest challenges. Our reliable, responsive service creates lasting, rewarding connections with customers in electronics, disposable hygiene, medical, transportation, aerospace, clean energy, packaging, construction, woodworking, general industries and other consumer businesses. Our promise to our people connects them with opportunities to innovate and thrive. For more information, visit us at https://www.hbfuller.com.
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Additional information about these various risks and uncertainties can be found in the “Risk Factors” section of our Form 10-K filings, and any updates to the risk factors in our Form 10-Q and 8-K filings with the SEC, but there may be other risks and uncertainties that we are unable to identify at this time or that we do not currently expect to have a material impact on the business. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.
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