Formica Sold To N.Z. Company

CINCINNATI – Fletcher Building Ltd., a New Zealand materials and construction company, will buy Formica Corp. for $700 million
Formica officials announced the deal on May 22 with a statement from their Cincinnati headquarters.
Fletcher, based in Auckland, New Zealand, shows annual revenues of $4 billion. It bought Formica from private-equity investors Cerberus Capital Management L.P. and Oaktree Capital Management LLC.
The equity investors may also offer deferred payments of up to $50 million; the two companies will also retain Formica’s South American operations and certain California real estate.
“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,” said Frank Riddick, Formica president/CEO. “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.”
“Formica is a recognized innovator in its industry, with an excellent track record of new product development and successful product introduction,” said Fletcher Building Chief Executive Officer Jonathan Ling. “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 subject to regulatory approvals and is expected to close early next month. Formica does not expect the new ownership to have a significant impact on day-to-day operations.
Formica’s product line includes Formica® Stone, a quartz-surface material, and Formica Granite.