19 April 2012 20:33 [Source: ICIS news]
(includes updates throughout)
HOUSTON (ICIS)--US-based HB Fuller will pay $12.7m (€9.6m) in exit costs associated with the closure of 6 plants and the elimination of 130 positions in connection with its acquisition of adhesives maker Forbo, the company said on Thursday.
HB Fuller said in a regulatory statement that it plans to complete the closures by the end of fiscal year 2013.
“The Company currently expects to incur exit costs of approximately $12.7m [$8.1m after-tax] related to these actions,” HB Fuller said.
The exit costs include after-tax cash expenditures of about $3.2m for severance and related employee costs and about $4.9m for other associated costs, mainly for plant shutdowns, the company said.
HB Fuller said in December it expected to eventually achieve $50m/year in cost synergies as a result of the acquisition.
($1 = €0.76)
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