H.B. Fuller said it agreed to buy Swiss firm Forbo's industrial adhesives business for $395 million, as the specialty chemicals maker bulks up its presence in Europe.
Europe, India, Middle East and Africa together form the second-largest market after North America for H.B Fuller, while a little over half of Forbo's revenue came from Europe in 2010.
"Forbo's business brings a commercial base in Eastern Europe that fills a gap for us, and compliments our stronger position in the Middle East and Africa," said chief executive Jim Owens.
Since March 2009, St Paul, Minnesota-based H.B. Fuller has acquired four adhesive makers. Adhesive and related products make up more than 85 percent of the company's sales.
Forbo's adhesive business will generate about $580 million in revenue this year, H.B. Fuller said.
H.B. Fuller, which focuses on adhesives, sealants, paints and other specialty chemical products, expects its revenue to grow organically at 5-8 percent per year, Owens said. H.B Fuller's 2010 revenue was $1.36 billion.
