Adhesives manufacturers HB Fuller will be acquiring East and Central African provider of industrial adhesives Continental Products.
This transaction is expected to generate approximately €2.3m in revenue for the 2014 fiscal year.
After the completion of the transaction, Continental will be included in HB Fuller's Europe, India, Middle East and Africa (EIMEA) operating segment.
Continental was established in 1996 and develops high-quality adhesives solutions for industries like paper converting, printing and packaging, labeling, laminating, bookbinding, automotive assembly, footwear and construction.
With the addition of this company, HB Fuller will get access to local infrastructure in Kenya and will be able to fully leverage its broad-based technology portfolio more effectively.
HB Fuller EIMEA senior vice president Steve Kenny said: "With this acquisition, we will take a significant step forward in our plan to grow in Africa. HB Fuller has a strategic focus on growth in emerging markets, and the Continental business will enable us to deliver specialty adhesive products to key customers in the East and Central African regions.
"The Continental team has developed extensive market knowledge and exceptionally strong customer relationships, and coupled with their local manufacturing capabilities, H.B. Fuller will be able to further enhance partnerships with its customers to develop and produce new and better products for their customers."
Continental has been HB Fuller's agent in the region since 2003.
HB Fuller recorded net revenues of $2.05bn in 2013 and specialises in producing adhesives, sealants and other specialty chemical products.
Image: HB Fuller recently launched its renewable raw material hot melt adhesive, Advantra True for Europe. Photo: courtesy of HB Fuller.
