Fletcher Building agrees to buy balance of Homapal Plattenwerk

Fletcher Building’s Formica laminates business has agreed to buy the 50 percent of Germany’s Homapal Plattenwerk it doesn’t already own for 30 million euros.

Formica has owned a half stake in Homapal and been its largest customer since 1983.

Moving to 100 percent ownership will give Auckland-based Fletcher an increased presence in the German market for metal and specialty laminates, the company said in a statement today. It will also allow Homapal to leverage Formica’s distribution in Asia to sell more metallic laminates, it said.

The deal was priced at 7.9 times earnings before interest and tax before synergies benefits, it said. The transaction will close on April 2.

Fletcher stock traded at $6.63 yesterday and has gained 6.5 percent this month.

(BusinessDesk)

BusinessDesk.co.nz

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

April 26th Morning Report
SPG - Change to Executive Team
BGI - Forgiveness of $200,000 of secured indebtedness
General Capital Subsidiary General Finance Market Update
AFT,Massey Ventures,Gilles McIndoe to develop scar treatmen
April 24th Morning Report
Cheers to many fewer grape harvest spills
GTK - Half-Year Results Announcement Date
Government ends war on farming
Sky and BBC Studios renew expanded, multi-year agreement