Roofing News

H.B. Fuller Acquires U.K.-Based Liquid Adhesives Manufacturer Apollo

ST. PAUL, Minn. — H.B. Fuller Company announced today that it has finalized its purchase of Apollo, the United Kingdom’s largest independent manufacturer of liquid adhesives, coatings and primers for the roofing, industrial and construction markets.

Based in Tamworth, U.K., Apollo is projected to have 2022 revenue of approximately £42 million ($5.6 million) and EBITDA of approximately £11 million ($14.7 million). Apollo will operate within H.B. Fuller’s existing Construction Adhesives and Engineering Adhesives business units, and is expected to enhance H.B. Fuller’s position in key high-value, high-margin markets in the U.K. and Europe.

Apollo manufactures and sells a diverse range of commercial roofing, construction, and adhesives solutions. Apollo complements H.B. Fuller’s construction adhesives businesses in Europe and its recent addition in early January 2022 of Fourny nv in Belgium, which had 2021 sales of €8 million ($8.9 million) and EBITDA of €2.1 million ($2.3 million).

More than 80% of H.B. Fuller’s current sales in its Construction Adhesives business are in North America. The addition of this business will expand the company’s share in key construction markets in the U.K. and across Europe and enable global expansion of its position in the roofing industry.

“With these acquisitions, we have added deep market knowledge, strong customer relationships and a local manufacturing footprint, which will enable H.B. Fuller to capitalize on access to regional capabilities in the U.K. and core Europe and to fully leverage our Construction Adhesives technology portfolio much more effectively,” said H.B. Fuller President and CEO Jim Owens. "Apollo’s highly specified commercial roofing, construction and high-performance industrial adhesives will drive new growth opportunities in our construction and transportation adhesives businesses in the U.K. and across EIMEA."

Apollo’s roofing technology includes a range of insulation and membrane adhesives, and roof and waterproofing primers. The construction solutions business supplies liquid adhesive, sealants, and resin to construction markets, which are used to bond or repair building materials in homes, on construction sites and in factories, replacing traditional adhesives, such as cements, wood glues, or traditional fasteners. The industrial adhesive solutions business will enhance H.B. Fuller’s Engineering Adhesives’ transportation product line with high-performance applications for panel laminations in caravans and motor homes, PVC door panels, insulation, furniture, textiles, aircraft seating and marine vessels.

Total purchase price for the two acquisitions was $211 million, a multiple of 12.3X EBITDA before synergies. Annual run-rate synergies of $8 million are expected to be realized over the next three years, resulting in a post synergy multiple of 8.4X EBITDA.