Fletcher Building's Formica moves to full ownership of German partner

Fletcher Building’s Formica business is to buy the remaining 50% of metal and sheet laminates manufacturer and distributor Homapal it does not already hold, for €30 million ($NZ48 million).

Formica has been a 50% shareholder and largest customer of the Germany-based company since 1983.

The transaction is scheduled to be completed on April 2 and represents a 7.9 x EBIT multiple on current earnings before synergies.

As a subsidiary of Formica, the Homapal brand, leadership team and business model will remain unchanged. 

Formica says 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.

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% of Homapal output while a network of strategic business partners distributes the remaining 60%.

This article is tagged with the following keywords. Find out more about My Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

Coo.

Can they handle it?

Buying something in Europe but as FPA and SKL have shown, a fancy company in Italy or the like can be an waste of money.

Reply
Share

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7831 -0.0010 -0.13%
AUD 0.9224 0.0005 0.05%
EUR 0.6286 -0.0005 -0.08%
GBP 0.5013 0.0005 0.10%
HKD 6.0858 0.0040 0.07%
JPY 92.9740 0.0740 0.08%

Commods

Commodity Price Change Time
Gold Index 1167.0 -29.600 2014-11-28T00:
Oil Brent 74.4 -5.030 2014-11-28T00:
Oil Nymex 66.2 -7.540 2014-11-28T00:
Silver Index 15.5 -1.060 2014-11-28T00:

Indices

Symbol Open High Last %
NZX 50 5455.4 5474.7 5455.4 -0.57%
NASDAQ 4797.1 4810.9 4787.3 0.09%
DAX 9990.7 9990.7 9974.9 0.06%
DJI 17830.5 17893.4 17827.8 0.00%
FTSE 6723.4 6734.7 6723.4 -0.01%
HKSE 23982.3 24117.2 24004.3 -0.07%
NI225 17340.2 17471.9 17248.5 1.23%