Adhesives company H.B. Fuller (Saint Paul, Minn.) sold its flooring business to Los Angeles private equity firm Pacific Avenue Capital Partners, the company said in a press release.
The sale comes as the company is reorganizing the building and construction segments of its portfolio to focus on growing its architectural and infrastructure markets.
Proceeds from the sale are expected to be $80 million, and the divestiture will result in an annual revenue reduction of approximately $160 million, the company saidys.
As part of the reorganization, the company is combining its glass, woodworking and composite segments with its roofing, building and infrastructure segments to create the Building Adhesive Solutions unit.
“This move is consistent with our strategy to drive our portfolio and capital allocation to the highest margin, fastest growing segments of the $80 billion global adhesives industry,” H.B. Fuller CEO Celeste Mastin said in a statement. “With Pacific Avenue Capital Partners, we have found the right home for our talented Flooring team and brand-recognized products.”
