Netherlands-based industrial holding company Broadview BV has completed its acquisition of the Formica Group.
The deal was announced in December last year when a bid of $840 million was tabled to buy the US surfaces group from its previous owner Fletcher Building Holdings.
In a statement, Broadview said: “Broadview welcomes the Formica companies to its family of businesses in the field of material technology which already include Arpa, Trespa and Westag. With combined sales of €1.2 billion (£950 million) and circa 6,000 employees, the expanded group will have a leading global position in surface materials.
“Combining Formica’s brand and distribution network with the technology base and product portfolio of its new sister companies will offer several benefits to Formica’s customer base, thereby also supporting profitable long term growth of the business. These benefits include access to the proprietary products from Arpa, Trespa and Westag as well as strengthened investment in the development of innovative superior surface solutions.”
Back in December when the deal was first announced, Mitch Quint, president of Formica Corporation North America, said the agreement represented “an exciting future”.
He added: “The two businesses are complementary, with a strong strategic alignment. Formica brings a global reach with its operational and commercial capabilities, and Broadview brings unique and innovative product technologies.”
Also commenting at the time, Fletcher Building chief executive Ross Taylor said: “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.”
Earlier in 2018 when, Fletcher announced intentions to sell Formica, Peter Rush, president of Formica Group (in picture above), said: “Under Fletcher Building’s ownership, Formica Europe has received record levels of investment to drive improvements in safety, service and manufacturing excellence and to create an innovation pipeline that will allow us to continue the turnaround through sales growth.
“While we will miss being part of the Fletcher family, the investment that we announced last year will continue to be delivered in full, culminating with the commissioning of the new plant equipment later this year.
“With this, the future looks bright for our business and we are enthusiastic about what lies ahead.”
Formica was founded in 1913, has production facilities in North America, Asia and Europe, and has a turnover of around $713 million and around 3,400 employees.