Building a Stronger Adhesive Future

H. B. Fuller has addressed concerns raised by activist investor ANCORA, underscoring its commitment to shareholder input and its ambitious growth plan.

Listening to Diverse Viewpoints

The company says it listens carefully to a range of perspectives, including ANCORA’s. Its board values this feedback and sees it as integral to strategic decision‑making.

Aiming for Faster, Higher‑Margin Growth

• Core focus: Transition into a faster‑growing, high‑margin specialty adhesive leader.
• Target metrics:
• > 20% adjusted EBITDA margin
• Low‑teens ROIC
• Strong, sustainable cash flow

Management believes that tight day‑to‑day operations and a disciplined M&A policy will drive these outcomes.

Acquisitions Power Scale & Speed

• Market is highly fragmented, enabling selective asset purchases.
• Since early 2023: 13 acquisitions added significant adjusted EBITDA and improved margins via synergy gains.
• UK example (2022‑present):
• Four businesses added $30 million in adjusted EBITDA at ~13% margins.
• Post‑integration: > $60 million in adjusted EBITDA with over 23% margins after three years.

Strengthening the Balance Sheet

• Net debt/adjusted EBITDA: Dropped from 3.5× last year to 3.1× this quarter, indicating a leaner balance sheet.

Ongoing Value Creation

• H. B. Fuller will continue exploring value‑creating opportunities while maintaining discipline in M&A and debt reduction.
• A recent disclosure about Advanced Medical Solutions Group (AMS) was prompted by UK takeover rules; talks are ongoing, but no firm offer is guaranteed. All potential deals will be scrutinized with the same rigor as past transactions.

Forward‑Looking Commitment

The company looks forward to ongoing dialogue with shareholders about its strategy and long‑term growth plans.