H.B. Fuller announces divestiture of flooring business to Pacific Avenue Capital

H.B. Fuller (FUL) Company announced that it will reorganize the building and construction segments of its portfolio. The reorganization includes the sale of the Flooring business as well as combining the company’s Insulated Glass, Woodworking, and Composite segments, currently part of Engineering Adhesives, with its Roofing and Building Envelope and Infrastructure segments to form a newly named Global Business Unit: Building Adhesive Solutions, effective with the start of H.B. Fuller’s 2025 fiscal year. BAS, as combined, generated approximately $850M in net revenue and approximately $130M in adjusted EBITDA in fiscal year 2024. H.B. Fuller also announced today that it has sold its Flooring business to Pacific Avenue Capital Partners. “This move is consistent with our strategy to drive our portfolio and capital allocation to the highest margin, fastest growing segments of the $80B global adhesives industry,” says H.B. Fuller President and CEO Celeste Mastin. Proceeds from the sale are expected to be $80M, and the divestiture will result in a reduction in annual revenue of approximately $160M and adjusted EBITDA of approximately $15M going forward. The acquisition closed on Dec. 2, the second day of H.B. Fuller’s 2025 fiscal year. H.B. Fuller was advised in the sale by Harris Williams.