H.B. Fuller Company said its board of directors unanimously rejected Ancora's second unsolicited, non-binding proposal to acquire the company's Building Adhesive Solutions (BAS) business for between $1.2 billion and $1.4 billion in cash.
The Minnesota-based adhesives maker said the review was supported by independent financial and legal advisers. The board concluded that the modest increase in the offer price did not adequately reflect BAS's value, including its organic growth momentum, its role within the broader H.B. Fuller platform and potential upside from Project Quantum Leap.
The board also said the proposal continued to lack key details, leading it to view the terms as highly conditional.
Targeted market check
H.B. Fuller said its board continues to evaluate opportunities to maximize shareholder value. It has decided to conduct a market check involving selected market segments and product lines that are less integral to its portfolio and strategy. The company intends to use any proceeds to reduce debt.
As part of that process, H.B. Fuller will assess the feasibility of separating certain market segments. The review will consider stranded costs, tax implications, dis-synergies and the effect on execution of Project Quantum Leap.
The company expects to complete the market check by the end of 2026. The announcement does not indicate that a sale or separation has been approved or completed.