HB Fuller Likely To Be Involved In An Adhesives M&A Land Grab

HB Fuller (FUL)  is a $2.5bn American adhesives group being looked at by a number of parties. The company is a prime, quality player in its space, and with annual revenues up to $3bn, ROE is 15%  and growing. Therefore it makes sense for competitors to try and consolidate their position in the adhesives space by taking it over.

hbfullerlogo

In Europe we have a company called Arkema who are eyeing up HB Fuller. But there is also 3M in the US, and in Germany,  Covestro AG. The main company looking at HB Fuller is Arkema, but clearly 3M has the financial firepower as it is a much larger company. This implies the premium on the current share price could be significant, especially if a bidding battle is triggered. The take out price would likely have to be at least $65.

 

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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