Fletcher Building Limited announced that it has entered into an agreement to sell the Formica Group to Broadview Holding BV for a sale price of $840 million.
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 sale is subject to conditions which are customary for a transaction of this nature, including regulatory approvals. The regulatory approvals required for the transaction relate to the competition regimes in a number of the countries where Formica operates.
Fletcher also confirmed its intention to reinstate dividends in its 2019 financial year, starting with an interim dividend to be declared upon finalization of half-year results in February.
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