Fuller Invests $180 Million to Acquire Two Leaders in Medical Adhesive Technology

Fuller, the largest pure adhesive company globally (NYSE: FUL), has officially announced that it has signed agreements to acquire two leading companies in the medical adhesive technology sector: GEM and Medifill.

Since its establishment in 1887, Fuller has been committed to enhancing the development of adhesives, sealants, and other specialty chemicals to help customers improve product quality and enhance people's quality of life. In fiscal year 2022, Fuller achieved a net income of $3.7 billion and is dedicated to innovative and sustainable adhesive solutions, integrating people, products, and processes to address a range of global adhesive technology challenges. Fuller's business spans various sectors, including electronics, healthcare, medical, transportation, aerospace, clean energy, packaging, construction, woodworking, general assembly, and consumer products. By providing timely and reliable services, Fuller has established strong and lasting partnerships with its customers, effectively fulfilling its commitment to offer innovative and successful opportunities for its employees.

GEM, an Italian manufacturer founded in 1994, is a market-leading supplier of medical adhesives and innovative application devices, selling its products in over 40 countries worldwide, including Glubran 2 and Glubran Tiss 2 and their application devices. Its products have been approved and certified for over 80 internal indications. This acquisition will enable Fuller to establish a European headquarters in the medical adhesive technology business, expand its product offerings in the medical adhesive sector, and further shift its product portfolio toward more profitable and higher growth potential markets.

Medifill, headquartered in Dublin, Ireland, specializes in the development and production of medical-grade cyanoacrylate adhesives and has advanced cleanroom and manufacturing capabilities. The company offers its global customers the CutisSeal® series of tissue adhesives and advanced wound closure products. Medifill's next-generation formulations allow for rapid, safe, and effective wound closure.

These acquisitions are a continuation of Fuller's investments in the tissue adhesive market, which includes the 2016 acquisition of Cyberbond, the 2021 acquisition of Tissue Seal, and the 2023 acquisition of Adhezion Biomedical, significantly expanding the company's scale and geographical reach in the global medical adhesive technology business.

The combined projected net income and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the two companies in 2024 are expected to reach €23 million and €11.5 million, respectively.

These two companies will operate under Fuller's Health Care, Medical, and Consumer Adhesives Global Business Division (HHC). With a total acquisition price of €180 million, the valuation of these two acquisitions is 15.5 times the pre-synergy EBITDA and is expected to reach 9.5 times the EBITDA after synergies in three years.

Subject to customary closing conditions and regulatory approvals, the acquisition of GEM is expected to be completed by February 2025. As a specialized manufacturer of adhesives and sealants, Fuller continues to invest in medical adhesives, actively integrating resources to provide a rich array of solutions in medical devices for surgical and wound care, and will continue to innovate.