NEW ZELAND – Fletcher Building Limited (‘Fletcher Building’ or ‘the Company’) announce today that it has entered into an agreement to sell the Formica Group (‘Formica’) to Broadview Holding BV (‘Broadview’) for a sale price of USD 840 million (NZL 1,226 million).

The sale, which includes Formica businesses in North America, Europe, and Asia, as well as its Homapal metal laminates business is subject to conditions which are customary for a transaction of this nature, including regulatory approvals.

Fletcher Building CEO Ross Taylor said: “The divestment of Formica completes our strategy to exit non-core businesses having already completed the sale of Roof Tile Group in November 2018. Our five year strategy is to refocus Fletcher Building’s capital and capability behind our New Zealand and Australian businesses, with building products and distribution at our core. 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. 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.”

The Formica Group invented laminate in 1913 and remains a leading provider of branded, designed surfacing solutions for commercial and residential customers worldwide. Broadview Industries currently owns Trespa (the global leader in exterior compact siding), Arpa (the largest HPL provider in Italy and developer of the innovative Fenix product line), and Westag (German based HPL manufacturer and a large-scale fabricator).

“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 Corporation 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.”