H.B. Fuller Co. has finalized its purchase of Apollo, reportedly the UK’s largest independent manufacturer of liquid adhesives, coatings, and primers for the roofing, industrial, and construction markets. Based in Tamworth, UK, Apollo is projected to have 2022 revenue of approximately £42 million (about $56.3 million). Apollo will operate within H.B. Fuller’s existing Construction Adhesives and Engineering Adhesives business units; the business is expected to enhance H.B. Fuller’s position in key high-value, high-margin markets in the UK and Europe.
Apollo manufactures and sells a range of commercial roofing, construction, and adhesives solutions. According to H.B. Fuller, Apollo complements its Construction Adhesives businesses in Europe and its recent addition in early January 2022 of Fourny nv in Belgium, which had 2021 sales of €8 million (~ $9 million). The addition of this business will expand the company’s share in key construction markets in the UK and across Europe and enable global expansion of its position in the roofing industry.
Apollo’s roofing technology includes a range of insulation and membrane adhesives, as well as roof and waterproofing primers. The construction solutions business supplies liquid adhesive, sealants, and resin to construction markets. The industrial adhesive solutions business will enhance H.B. Fuller’s Engineering Adhesives’ transportation product line with high-performance applications for panel laminations in caravans and motor homes, PVC door panels, insulation, furniture, textiles, aircraft seating, and marine vessels.
The total purchase price for the two acquisitions was $211 million, a multiple of 12.3X EBITDA before synergies. Annual run-rate synergies of $8 million are expected to be realized over the next three years, resulting in a post synergy multiple of 8.4X EBITDA.
“With these acquisitions, we have added deep market knowledge, strong customer relationships and a local manufacturing footprint, which will enable H.B. Fuller to capitalize on access to regional capabilities in the UK and core Europe and to fully leverage our CA technology portfolio much more effectively,” said Jim Owens, president and CEO of H.B. Fuller. “Apollo’s highly specified commercial roofing, construction and high-performance industrial adhesives will drive new growth opportunities in our construction and transportation adhesives businesses in the UK and across EIMEA.
“Fourny’s position as a leader in the commercial roofing business will accelerate our growth in the region and allow localization of products imported from the United States. Our companies share cultures and growth strategies that are well aligned, and both companies will integrate seamlessly into our Construction and Engineering Adhesives business units. Together, we will leverage the synergies made possible through this transaction to partner more efficiently and effectively with customers in roofing, building envelope and transportation.”
For more information, visit www.hbfuller.com, www.apollo.co.uk, and www.fourny.be.