CINCINNATI - Formica Group is being acquired by Broadview Industries, a Netherlands-based firm involved in high-pressure laminates and associated product lines, for $840 million. The sale includes Formica businesses in North America, Europe, and Asia, as well as its Homapal metal laminates business.
Announced Dec. 17 by Fletcher Building, parent firm of Formica, the transaction is expected to be finalized in the first half of 2019. The sale is subject to customary conditions and regulatory approvals.
Formica invented laminate in 1913 and remains a leading provider of branded, designed surfacing solutions for commercial and residential customers worldwide. Broadview Industries currently owns Arpa, considered the largest HPL provider in Italy and developer of the innovative Fenix product line, Westag, a German-based HPL manufacturer and a large-scale fabricator, and Trespa, a global leader in exterior compact siding.
"This combination represents an exciting future for the Formica Group, as the two businesses are complimentary with a strong strategic alignment. Formica brings a global reach with its operational and commercial capabilities and Broadview brings unique and innovative product technologies, including Trespa exterior products and Fenix acrylic surfaces," said Mitch Quint, president of Formica Corp. North America. "We're grateful to Fletcher Building for investing in our business for 11 years and for finding a buyer in Broadview Industries who echoes our commitment to product leadership, sales and specification excellence, and industry-leading customer service."
Fletcher Building CEO Ross Taylor noted the divestment of Formica complete's the company's strategy to exit non-core businesses. “We are pleased to have signed the sale agreement in line with our target timing, and to have achieved a strong valuation for the business. We believe Broadview is a natural owner of Formica, being a leading player in the laminates industry," he said.
"We are confident that the regulatory process required to complete the sale will go smoothly, and on that basis expect the sale to be completed by the end of FY19,” Taylor added.
Based in 's-Hertogenbosch, the Netherlands, Broadview is controlled by HAL Holding N.V., an international holding company. The current portfolio covers three industry segments: material technology, personal protective equipment and energy. With the acquisition of the Formica Group, Broadview will become a global leader in high-pressure laminate.
Founded in 1913, Formica Corp., part of the Formica Group global group of companies, which also include Formica Canada Inc., Formica de Mexico S.A. de C.V., Formica IKI Oy, Formica Skandinavien AB, Formica Ltd., Formica S.A., Formica S.A.S., Formica Taiwan Corp., Formica (Thailand) Co., Ltd., Formica (Asia) Ltd., Formica Decorative Materials (China) Co., Ltd. and Homapal GmbH. The Formica Group of companies was part of the International Business division of Fletcher Building. Fletcher Building is New Zealand's largest builder organization.
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