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- Release Date: 31/01/12 11:30
- Summary: ASSET: FBU: Formica buys remaining 50 pecent shareholding in Homapal
- Price Sensitive: No
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FBU
31/01/2012 09:30
ASSET
REL: 0930 HRS Fletcher Building Limited
ASSET: FBU: Formica buys remaining 50 pecent shareholding in Homapal
Auckland, 31 January, 2012 - Fletcher Building Limited announces that its
Formica business has reached agreement to acquire all of the shares in
Homapal Plattenwerk ("Homapal"), a manufacturer and distributor of metal and
specialty laminates, for EUR30 million (NZ$48 million). Formica has been a
50-percent shareholder - and the largest customer - of the Germany-based
company since 1983. The transaction is scheduled to be completed on 2 April,
2012.
Homapal is a global leading specialist in the design, manufacture and
distribution of high-quality metal and specialty laminates. Its product range
is complementary to Formica's, and will consolidate Formica's position as a
global brand leader in the surfacing industry. Full ownership of Homapal
will increase Formica's presence in Germany, one of the world's largest
laminate markets and where Homapal already has a strong market position. It
will also allow Homapal to achieve greater access to growth opportunities for
metallic laminates in Asia, due to Formica's strong presence through its
distribution network and customer base. The transaction represents a 7.9 x
EBIT multiple on current earnings before synergies.
"Homapal is a successful company with an outstanding reputation as a niche
leader in the high-end metal and specialty laminate business," said Formica
chief executive Mark Adamson. "We've been a part of the Homapal business for
decades. We understand its capabilities and market differentiating qualities,
and we're eager to welcome Homapal to Formica while expanding our Laminates &
Panels division."
Homapal manufactures laminates of aluminum, brass, copper and other metal
foil in various plain and design effects. Its manufacturing facility is
located in the centre of Germany, approximately 100 km south of Hanover and
250 km from Hamburg, and employs 70 people. Formica currently procures and
distributes approximately 40 percent of Homapal output while a network of
strategic business partners distributes the remaining 60 percent.
As a subsidiary of Formica, the Homapal brand, leadership team and business
model will remain unchanged. Adamson added: "Homapal is a successful, lean
and forward-thinking company, and we aim to move forward with the mindset of
business as usual while maintaining focus on growth opportunities presented
by full ownership".
For further information contact:
Philip King
General Manager Investor Relations
Phone: + 64 9 525 9043
Mobile: + 64 27 444 0203
End
End CA:00219006 For:FBU Type:ASSET Time:2012-01-31 09:30:09
