Engine Capital urges H.B. Fuller to explore sale options

Engine Capital, a prominent investment firm, has urged H.B. Fuller to consider selling parts of its company. The investment group, which owns about 2% of H.B. Fuller, sent a letter to the company's board recommending a thorough examination of its operations. They specifically suggested parallel market checks for the Building Adhesive Solutions (BAS) business and the entire company.

Engine Capital believes H.B. Fuller should evaluate the value of BAS through sales to Ancora Holdings Group and a full company sale. They're concerned about the company's current risks, which include focusing on integrating a recent acquisition, an aggressive debt reduction plan, and a restructuring program. The financial analyst firm estimates H.B.

Fuller's stock is trading at around 8 times 2026 EBITDA, less than what they believe private market deals could fetch at 9x to 11x EBITDA. The company's stock dropped about 11% over five trading days after announcing the AMS acquisition and its second-quarter results, even though the company had improved its full-year EBITDA and earnings per share guidance.

Interestingly, seven out of eight board members have never bought shares in the open market, with only Teresa Rasmussen, the chairperson, making such a purchase.