Saturday, December 21, 2024

H.B. Fuller acquires Medifill

H.B. Fuller has signed agreements to acquire two leading medical adhesive technology companies: GEM and Medifill. Medifill is an Irish formulator and producer of medical-grade cyanoacrylate adhesives with a state-of-the-art clean room and manufacturing capabilities. Medifill produces advanced technology that is specifically tailored for the wound closure market. The next-generation formulations enable fast, safe, and effective wound closure.

GEM is an Italian manufacturer and market-leading provider of medical adhesives and innovative application devices approved and certified for over 80 internal indications. The acquisition establishes a European headquarters for H.B. Fuller’s Medical Adhesive Technologies (MAT) business and expands the company’s medical adhesive offerings, further shifting its portfolio toward highly profitable, higher-growth markets.

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These acquisitions build upon H.B. Fuller’s previous investments in the tissue adhesives market – including the acquisition of Cyberbond in 2016, Tissue Seal in 2021, and Adhezion Biomedical in 2023 – significantly expanding the company’s global Medical Adhesive Technologies (MAT) business and geographic footprint.

“Tissue adhesives designed for internal use offer innovative alternatives to traditional sutures, staples and embolizing agents,” says H.B. Fuller president and CEO Celeste Mastin. “With the purchase of GEM, Medifill, and our previous acquisitions in this space, H.B. Fuller has now built a Medical Adhesive Technologies business founded on our expertise in cyanoacrylate chemistry, and we have extended our penetration into a global footprint.”

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When combined, the two companies are expected to generate 2024 net revenue and adjusted EBITDA of €23 million and €11.5 million, respectively. The two companies will operate within H.B. Fuller’s Hygiene, Health & Consumable (HHC) Adhesives Global Business Unit (GBU). On a combined basis, the acquisitions will be completed at a pre-synergy EBITDA multiple of 15.5X, and a three-year post-synergy EBITDA multiple of 9.5X based on a combined purchase price of €180 million.

Subject to customary closing conditions and regulatory approvals, the GEM acquisition is expected to close in February 2025.

NewsDesk
NewsDesk
The editorial team of The Packman who handle all the press releases with Sunil Jain working as the desk editor.

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