H.B. Fuller Grows EBITDA Margins to 23% and Cuts Debt Ratio to 3.1x
FUL•H.B. Fuller grew acquired adjusted EBITDA to over $60 million with margins climbing from 13% to 23% and cut its net debt/EBITDA ratio from 3.5x to 3.1x. The company targets over 20% adjusted EBITDA margins and low-teens ROIC through specialty adhesives focus and disciplined M&A.
1. M&A Track Record
Since early 2023, H.B. Fuller has completed 13 acquisitions in fragmented specialty adhesives markets, including four U.K. businesses acquired since 2022. These deals added $30 million of acquired adjusted EBITDA at roughly 13% margins and have driven that figure to over $60 million with 23% margins in three years.
2. Financial Targets and Strategy
Management is executing a strategy to reposition the company into a faster-growing, higher-margin specialty adhesives player. The plan aims for over 20% adjusted EBITDA margins and low-teens ROIC through continued operational execution and disciplined M&A.
3. Balance Sheet Management and AMS Discussions
The firm reduced its net debt/adjusted EBITDA ratio from 3.5x to 3.1x year-over-year while maintaining cap-allocation discipline. H.B. Fuller remains open to value creation paths, including potential discussions on a binding offer for Advanced Medical Solutions Group, with no certainty of an offer.
