Fletcher Building's Formica laminates business has agreed to buy the 50 per cent 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 per cent 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 per cent this month.
