U.S. adhesives manufacturer H.B. Fuller said on October 19 that its board had unanimously rejected a second unsolicited, non-binding offer from Ancora Holdings to acquire its Building Adhesive Solutions (BAS) business for $1.2 billion to $1.4 billion in cash. Following a review with independent financial and legal advisers, the company said the revised proposal still undervalued the division and lacked important details needed to proceed with a transaction. Fuller also announced a market review of selected non-core business segments and product lines.
Ancora first approached H.B. Fuller in August with an offer valued at $1.1 billion to $1.2 billion, which the board also rejected. Although the upper end of the latest bid increased to $1.4 billion, Fuller's directors said the proposal did not adequately reflect BAS's growth prospects or its importance to the wider adhesives portfolio. The board also described the revised terms as highly conditional.
BAS supplies adhesives and related materials for construction applications. H.B. Fuller pointed to the division's organic growth momentum and the expected benefits of its Project Quantum Leap cost-reduction and operational optimization programme. The company said these factors strengthened its view of the business's value. It also raised concerns about the potential costs and operational complications of separating a business that shares resources with other divisions.
Alongside the rejection, H.B. Fuller announced plans to test market interest in certain businesses and product lines considered less central to its long-term strategy. The company will examine whether those operations can be separated without creating excessive tax costs, operating inefficiencies or disruption to its broader transformation programme. Any proceeds from future disposals would be directed toward debt reduction. The market review is expected to be completed by the end of 2026, with no specific assets or buyer agreements announced.
