Specialty chemicals maker H.B. Fuller (FUL.N) said it will sell its Central American paints business to a Grupo Mundial unit for $120 million, to focus on its core adhesives business.
The business being sold generated a revenue of $113.5 million, or about 7 percent of its total, in 2011.
"Our strategic vision is to be the best adhesives company in the world, and the paints business is not, therefore, core to our strategic plan," H.B. Fuller Chief Executive Jim Owens said.
The paints business operates under the Glidden and Protecto brands in Central America.
The deal is expected to close in 60 days, H.B. Fuller said in a statement.
The business is being sold to Medellin, Colombia-based Compania Global de Pinturas, a unit of Grupo Mundial.
Grupo Mundial operates in 12 countries and is present in several sectors including paints, chemicals, general wholesaler, water pipes, inks and packaging.
Shares of H.B. Fuller closed at $31.95 on Monday on the New York stock Exchange.
(Reporting by Durba Ghosh in Bangalore; Editing by Sreejiraj Eluvangal)