Formica Corp. said it is being acquired by the company that
owns the rights to the Formica brand in New Zealand and Australia.
Fletcher
Building Limited, based in Auckland,
New Zealand, has agree to pay more than $700 million for the
Cincinnati-based
Formica, which has 3,800 employees in 14 manufacturing and 33
distribution
facilities worldwide. The company’s products include laminate and
granite counter tops sold
under the Formica name. The company notes that the Formica brand
laminate flooring, manufactured by Barnwell, S.C.-based Kronotex, will
not be affected.
Formica Corp. said it is being acquired by the company that
owns the rights to the Formica brand in New Zealand and Australia. Fletcher
Building Limited, based in Auckland,
New Zealand, has agree to pay more than $700 million for the Cincinnati-based
Formica, which has 3,800 employees in 14 manufacturing and 33 distribution
facilities worldwide. The company’s products include laminate and granite counter tops sold
under the Formica name. The company notes that the Formica brand laminate flooring, manufactured by Barnwell, S.C.-based Kronotex, will not be affected.
In announcing the deal,
Formica’s ceo Frank Riddick said the acquisition
would help facilitate continued growth for his company. “Our goal has been to
establish an ownership structure that will allow us to build upon our success
and continue to invest in and grow the business, and our people. Fletcher is
ideally aligned with this objective due to its broad-based building material
and construction business and experience in the laminate and decorative surface
market.”
Fletcher Building ceo, Jonathan Ling, noted that the deal will help
enable his company to reach a worldwide audience. “We are confident that this
acquisition will allow us to establish a truly global laminates platform,
providing new opportunities for us in Asia and creating synergies across our
manufacturing, sales and distribution networks.”
The transaction is expected to close in early July, after which Formica will be
structured as a business unit within the Fletcher Building Laminates &
Panels division. Frank Riddick will remain as president and ceo of Formica and
the management team will remain with the company. Formica does not expect the
new ownership to have a significant impact on day-to-day operations
Formica acquired by New Zealand company for $700 mil.
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