Compania Global de Pinturas (Pintuco), a subsidiary of Grupo Mundial, has entered into an agreement to purchase H.B. Fuller's Central American paints business for $120m.
H.B. Fuller's Central American paints business began its operations in Costa Rica in 1949. It now has production plants in Honduras and Panama as well.
The acquisition enables Pintuco to add H.B. Fuller's brand products, laboratories and production plants to its portfolio.
The products are used for residential and commercial applications, including in architecture, marine and highway safety.
Jim Owens, H.B. Fuller president and CEO, said: "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 said its Central American paints business will be accounted for as a discontinued operation in its current fiscal 2012.
The transaction's closing is subject to certain conditions, including the notification of government and regulatory authorities, and it is expected to be completed within 60 days.
Grupo Mundial has six divisions, namely paints, chemicals, general wholesale, water pipes, inks and packaging.