A New Zealand-based building products maker is buying Cincinnati-based thermoset laminates producer Formica Corp. for $700 million.
Fletcher Building Ltd., based in Auckland, is acquiring Formica from private equity firms Cerberus Capital Management LP in New York and Oaktree Capital Management LLC in Los Angeles, both of which bought Formica out of Chapter 11 bankruptcy in 2004.
The deal is subject to regulatory review and is expected to close in July.
According to a Formica news release, Fletcher Building owns Laminex, a laminate maker that owns the rights to and sells under the Formica brand name in Australia and New Zealand.
``The combination of Formica and Fletcher Building's Laminex businesses will create the largest global manufacturer of decorative surfaces and high-pressure laminates in the world,'' Frank Riddick, Formica's president and chief executive officer, said in a news release.
Formica's headquarters will remain in Cincinnati. The company employs more than 3,800. It has 14 manufacturing plants in North America, Europe and Asia.
``Formica is a recognized innovator in its industry, with an excellent track record of new product development and successful product introduction,'' Jonathan Ling, Fletcher Building's CEO, said in a news release.
``We are confident that this acquisition will allow us to establish a truly global laminates platform, providing new opportunities for us in Asia and creating synergies across our manufacturing, sales and distribution networks,'' Ling said.