We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
H.B. Fuller Prices $850M Debt Offering to Fund AMS Acquisition
Read MoreHide Full Article
Key Takeaways
H.B. Fuller prices $850M in 7.625% senior unsecured notes due 2034 to fund its planned AMS acquisition.
Proceeds will also repay existing credit borrowings and refinance 4.000% notes maturing in February 2027.
H.B. Fuller must redeem $450M of the new notes if the AMS acquisition is not completed by June 25, 2027.
H.B. Fuller Company (FUL - Free Report) recently priced an offering of $850 million in senior unsecured notes to help finance its planned acquisition of Advanced Medical Solutions Group plc (AMS), repay existing debt and other borrowings to support flexible operations.
The offering comprises 7.625% senior unsecured notes due 2034, with an issue price of 100% of the principal amount. The notes will pay interest semiannually. The issuance is expected to close on or around Oct. 21, 2026, subject to customary closing conditions.
H.B. Fuller intends to use the net proceeds, along with available cash and borrowings, to fund the purchase price for the AMS acquisition. The company also plans to repay borrowings under its existing credit agreement and fund the repayment or redemption of its 4.000% notes due Feb. 15, 2027.
The debt offering is linked to the completion of the AMS acquisition. H.B. Fuller had previously agreed to a cooperation agreement dated June 25, 2026, under which, if the acquisition is not completed by June 25, 2027, H.B. Fuller will be required to redeem $450 million of the new notes at 100% of the issue price, plus accrued and unpaid interest. The financing is expected to support H.B. Fuller's acquisition strategy while addressing upcoming debt maturities. A higher interest rate can increase financing expenses, but the impact on leverage and cash flow is yet to be seen.
FUL shares have lost 14.1% in the past year against the industry’s 4.8% growth.
Image Source: Zacks Investment Research
FUL’s Zacks Rank & Key Picks
FUL currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Air Products and Chemicals, Inc. (APD - Free Report) and Axalta Coating Systems Ltd. (AXTA - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 51.2% over the past year.
The Zacks Consensus Estimate for APD’s current fiscal-year earnings is pinned at $13.46 per share, indicating an 11.89% year-over-year rise. APDshares have gained 15.5% over the past year.
The Zacks Consensus Estimate for AXTA’s fiscal 2026 earnings is pegged at $2.63 per share, indicating a year-over-year rise of 5.62%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 6.4%.
View the Zacks #1 Rank List
Image: Bigstock
H.B. Fuller Prices $850M Debt Offering to Fund AMS Acquisition
Key Takeaways
H.B. Fuller Company (FUL - Free Report) recently priced an offering of $850 million in senior unsecured notes to help finance its planned acquisition of Advanced Medical Solutions Group plc (AMS), repay existing debt and other borrowings to support flexible operations.
The offering comprises 7.625% senior unsecured notes due 2034, with an issue price of 100% of the principal amount. The notes will pay interest semiannually. The issuance is expected to close on or around Oct. 21, 2026, subject to customary closing conditions.
H.B. Fuller intends to use the net proceeds, along with available cash and borrowings, to fund the purchase price for the AMS acquisition. The company also plans to repay borrowings under its existing credit agreement and fund the repayment or redemption of its 4.000% notes due Feb. 15, 2027.
The debt offering is linked to the completion of the AMS acquisition. H.B. Fuller had previously agreed to a cooperation agreement dated June 25, 2026, under which, if the acquisition is not completed by June 25, 2027, H.B. Fuller will be required to redeem $450 million of the new notes at 100% of the issue price, plus accrued and unpaid interest. The financing is expected to support H.B. Fuller's acquisition strategy while addressing upcoming debt maturities. A higher interest rate can increase financing expenses, but the impact on leverage and cash flow is yet to be seen.
FUL shares have lost 14.1% in the past year against the industry’s 4.8% growth.
Image Source: Zacks Investment Research
FUL’s Zacks Rank & Key Picks
FUL currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Air Products and Chemicals, Inc. (APD - Free Report) and Axalta Coating Systems Ltd. (AXTA - Free Report) .
RS currently sports a Zacks Rank #1 (Strong Buy), and APD and AXTA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 51.2% over the past year.
The Zacks Consensus Estimate for APD’s current fiscal-year earnings is pinned at $13.46 per share, indicating an 11.89% year-over-year rise. APDshares have gained 15.5% over the past year.
The Zacks Consensus Estimate for AXTA’s fiscal 2026 earnings is pegged at $2.63 per share, indicating a year-over-year rise of 5.62%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 6.4%.