H.B. Fuller Company has reported will form joint ventures with Sekisui Chemical Company in Japan and China.
In Japan, Sekisui and H.B. Fuller will merge their Japanese adhesives businesses to create a new entity named Sekisui-Fuller Company, Ltd. Sekisui will control 60% of the new entity, while H.B. Fuller will retain an option, exercisable after two years, to increase its equity ownership to 50%.
Sekisui-Fuller Company will be one of the largest industrial adhesives businesses in Japan with approximately $150 million dollars in sales and considerable strength in the assembly, packaging and non-woven segments, according to H.B. Fuller. Employees of the adhesives operations of both companies will transition to Sekisui-Fuller.
In China, H.B. Fuller will sell a 20% equity interest in its China operations to Sekisui. Sekisui will retain an option, exercisable after two years, to increase its equity ownership to 30%.
"We are excited to be joining forces with Sekisui Chemical Company. This joint venture unites two complementary businesses in a strategic alliance that will create a strong market participant in one of the fastest growing regions of the world," said Al Stroucken, H.B. Fuller’s CEO.
The JVs are expected to close in the second quarter of 2005.