H.B. Fuller Company, an adhesives manufacturer based in St. Paul, Minnesota, announced a reorganization of its construction-related businesses and the sale of its Flooring division in a strategic move to accelerate growth.

The company will consolidate several existing segments into a new Global Business Unit called Building Adhesive Solutions (BAS), which will launch at the start of fiscal year 2025. The new unit combines the company's Insulated Glass, Woodworking, and Composite segments with its Roofing and Building Envelope and Infrastructure operations.

BAS, which generated approximately $850 million in net revenue and $130 million in adjusted EBITDA in fiscal 2024, will be led by Shahbaz (Boz) Malik as senior vice president. The reorganization aims to strengthen H.B. Fuller's position in the global infrastructure market, particularly in energy, utilities, and data management applications.

Simultaneously, the company announced the sale of its Flooring business to Los Angeles-based private equity firm Pacific Avenue Capital Partners for $80 million. The divestiture, which closed on December 2, 2024, will reduce H.B. Fuller's annual revenue by approximately $160 million and adjusted EBITDA by $15 million.

"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," said H.B. Fuller President and CEO Celeste Mastin.

The restructuring represents a significant shift in H.B. Fuller's business strategy, focusing on higher-growth market segments while finding "the right home for our talented Flooring team and brand-recognized products," according to Mastin.

Harris Williams, a global investment bank specializing in M&A and private capital advisory services, advised H.B. Fuller on the sale.