Adhesives manufacturer H.B. Fuller Company rejected another bid by an activist investor to buy its building adhesives business, the company announced Monday.
But officials also said that Fuller would evaluate the potential divestment of some of its operations over the coming weeks.
H.B. Fuller said that its board of directors had “unanimously” voted against accepting a second unsolicited proposal from Ancora for its Building Adhesive Solutions unit. The company rejected an initial offer in late August.
Fuller said that the latest offer would pay between $1.2 billion and $1.4 billion in cash for the business, up from $1.1 billion to $1.2 billion in the first offer. Fuller officials described the latest price as “modest” and said that it did not “adequately capture the value” of the business moving forward. They also said that the offer “continued to lack key details,” and that its terms could be “highly conditional.”
H.B. Fuller, however, also said in the statement that it would conduct a “market check” of select segments and product lines that are “less integral to its portfolio and strategy.” That process would include considering “the feasibility of separating certain market segments.”
The company indicated that any resulting proceeds would go toward deleveraging.
Officials said they expect the market check to be completed by the end of the year.
