Gluemaker clash betrays sticky activism era

It's on shaky ground. Fuller's share price has tumbled 8% over the past year while the Dow Jones U.S. Specialty Chemicals Index gained nearly 12%. The performance tracks closer to diversified peers Henkel and Avery Dennison, but the duo is also valued at more than under-8 times expected 2026 EBITDA, a premium to where investors rate Fuller, according to Visible Alpha.

Although 40% of the 184 first-half activist campaigns logged by investment bank Lazard are M&A-focused, finding an acquirer for Fuller might be tough. Private equity firms are choking on $4 trillion of unsold companies, while borrowing from embattled private credit shops might be harder. In the second quarter, buyout activity fell to $145 billion, consultancy Bain estimates, the lowest level since rising interest rates started crushing activity in 2022.

In that context, Ancora’s redoubled efforts make sense. Although rare, activist bids aren't unprecedented. Elliott Management bought bookseller Barnes & Noble, among others, while Irenic Capital Management partnered with Apollo Global Management to acquire manufacturer Arconic. Moving things along is important for Ancora, too, before Fuller starts touting more explicitly any benefits from its proposed acquisition.