Ancora Holdings Group LLC reaffirmed its unsolicited proposal to acquire H.B. Fuller Company’s Building Adhesive Solutions division, citing the segment’s consistent cash flow generation and potential to reduce the adhesives maker’s leverage.
The proposal, which includes provisions for a higher bid if due diligence supports it and no financing contingency, was reaffirmed after H.B. Fuller’s board declined the offer without entering into discussions. Ancora stated it first learned of the rejection via Bloomberg News on Monday, without receiving prior direct communication from the board.
Ancora criticized the board’s decision, warning it would consider legal action if shareholder value continues to be harmed. The firm also urged the board to either initiate a leadership change or conduct a strategic alternatives review. H.B. Fuller has not publicly responded to the reaffirmed proposal.
Ancora highlighted H.B. Fuller’s average free cash flow conversion rate of 28.1% over the past five years as evidence of the division’s financial strength. The company, founded in 2003, also emphasized that asset sales could help H.B. Fuller address its leverage position, framing the acquisition as a strategic opportunity for both parties.
