Breaking News

H.B. Fuller to sell joint venture stake

By Tim Wright | October 9, 2007

H.B. Fuller to sell joint venture stake

H.B. Fuller announced that it will sell its stake in an automotive joint venture to partner EMS Chemie Holding AG for $80 million in order to focus on integrating and improving product offerings within its core business areas. H.B. Fuller's adhesives are used by a wide range of industries, from appliances and bookbinding to textiles and tissues, while its construction unit makes caulking, coatings and other products.

The company also sells the Protecto line of paint in Central America.

H.B. Fuller entered the venture, known as EFTEC, with EMS Chemie a decade ago. The business makes bonding, coating and sealing products for automakers.

EFTEC's U.S. operations generated $74.5 million in revenue but recorded a loss of $3.4 million over the last 12 months. H.B. Fuller's minority interest in income was $400,000 during that period, the company said.

The European and Asian parts of the venture earned $6.2 million from equity investments.

The transaction is expected to close in the fourth quarter, subject to customary closing conditions and regulatory approval.