H.B. Fuller board rejects Ancora proposal for BAS unit, says offer undervalues business
FUL•Board rejects unsolicited BAS proposal
H.B. Fuller’s board unanimously rejected Ancora’s unsolicited, non-binding proposal to buy the Building Adhesives Solutions business.
Board says valuation and structure are insufficient
The board said the USD 1.1 billion to USD 1.2 billion valuation materially undervalued BAS versus precedent transactions.
Management said a BAS carve-out would create material dis-synergies because of shared manufacturing across more than 30 plants.
Management highlights BAS performance and leverage target
Management expects BAS to drive earnings, citing Q2 organic growth of 6% and a 10% EBITDA increase.
The board also said leverage can return to its 2.5x–3.0x target within two years following the Advanced Medical Solutions transaction.
