H.B. Fuller Company and Roanoke Companies Group, Inc. have entered into an asset purchase agreement under which a subsidiary of H.B. Fuller will acquire substantially all the assets of Roanoke and assume certain operating liabilities.
Roanoke is a manufacturer of pre-mix grouts, mortars and other products designed to enhance the installation of flooring systems. They are focused particularly on the retail home improvement market segment whose brand portfolio includes Tile Perfect, CHAPCO, Color Caulk and AIM. Roanoke will become part of H.B. Fuller's Specialty Construction Brands, Inc. (SCB) business unit within the Full-Valu/Specialty Group. Roanoke's brands will align with SCB's TEC brand in the flooring market.
"This combination will create significant cross-selling opportunities through channel expansion by leveraging each company's respective strengths," said Al Stroucken, chairman and chief executive officer of H.B Fuller. "The enhanced brand portfolio will enable us to extend our reach and deliver a superior product offering to our customers."
Total purchase price consideration is expected to be $270 million. The transaction is expected to close during the second quarter of H.B. Fuller's fiscal year 2006.