H.B. Fuller Co. announced Wednesday that it has a deal to purchase Bejing-based engineering adhesives maker Tonsan for $230 million.
Vadnais Heights-based H.B. Fuller has a deal to buy 95 percent of the equity of Tonsan. The rest of that company will remain owned by its four founding shareholders, who are remaining as part of the leadership team.
“With this acquisition, we enter the fast-growing and profitable engineering adhesives market and strengthen our business in China,” said Jim Owens, H.B. Fuller’s president and CEO in a press release. “Together with Tonsan’s management, we will grow in China and expand this business around the globe in ways that were not possible when Tonsan was an independent Chinese company. This acquisition will launch H.B. Fuller into some of the most exciting and profitable segments of the adhesives industry.”
Tonsan’s annual revenue is about $100 million, with earnings of about $20 million. Tonsan has about 500 employees, all in China. It has an office in Bejing and a manufacturing facility in Suzhou.
Fuller has about 3,700 employees worldwide, including about 500 in Minnesota. It expects the deal to close by the fourth quarter.
Fuller (NYSE: FUL) also announced its second quarter earnings results Wednesday after the market closed. The company posted net income of $20.5 million, or 40 cents per share, versus net income of $25.9 million, or 51 cents per share, in last year’s second quarter.
Taking into account one-time adjustments, the company’s second-quarter earnings per share were 78 cents, up 16 percent from the year-ago period.
Net revenue for the second quarter of 2014 was $544 million, up 4.8 percent versus the second quarter of 2013. Analysts had predicted it would have $545 million in revenue and earnings of 78 cents.
Fuller lowered its full-year guidance down to a range of $2.80 to $2.95 per share from the previous range of $3 to $3.15. It blamed the change on the slower than expected results of a business integration effort in Europe.
《H.B. Fuller to buy China’s Tonsan Adhesive》：
H.B. Fuller Co. announced Wednesday that it has a deal to purchase Bejing-based engineering adhesives maker Tonsan for $230 million.
Vadnais Heights-based H.B. Fuller has a deal to buy 95 percent of the equity of Tonsan. The rest of that company will remain owned by its four founding shareholders, who are remaining as part of the leadership team.
“With this acquisition, we enter the fast-growing and profitable engineering adhesives market and strengthen our business in China,” said Jim Owens, H.B. Fuller’s president and CEO in a press release. “Together with Tonsan’s management, we will grow in China and expand this business around the globe in ways that were not possible when Tonsan was an independent Chinese company. This acquisition will launch H.B. Fuller into some of the most exciting and profitable segments of the adhesives industry.”
Tonsan’s annual revenue is about $100 million, with earnings of about $20 million. Tonsan has about 500 employees, all in China. It has an office in Bejing and a manufacturing facility in Suzhou.
Fuller has about 3,700 employees worldwide, including about 500 in Minnesota. It expects the deal to close by the fourth quarter.
Fuller (NYSE: FUL) also announced its second quarter earnings results Wednesday after the market closed. The company posted net income of $20.5 million, or 40 cents per share, versus net income of $25.9 million, or 51 cents per share, in last year’s second quarter.
Taking into account one-time adjustments, the company’s second-quarter earnings per share were 78 cents, up 16 percent from the year-ago period.
Net revenue for the second quarter of 2014 was $544 million, up 4.8 percent versus the second quarter of 2013. Analysts had predicted it would have $545 million in revenue and earnings of 78 cents.
Fuller lowered its full-year guidance down to a range of $2.80 to $2.95 per share from the previous range of $3 to $3.15. It blamed the change on the slower than expected results of a business integration effort in Europe.