Formica Group, a part of New Zealand's Fletcher Building Ltd, has acquired the decorative laminate manufacturing division of Well Pack Papers & Containers Limited for approximately Rs 36.5 crore ($6.6 million). Gujarat based Well Pack will sell the assets include land, buildings and machinery related to its laminate business as a part of the transaction.
The decorative laminate manufacturing division of Well Pack is a three-year-old, 26,000 square metre High Pressure Laminate (HPL) facility with two presses and room for expansion. The transaction is planned for completion at the end of the calendar year. Singhi Advisors were the sole financial advisors to the deal.
Paul Zuckerman, chief executive of Fletcher Building's Laminates and Panels Division said: "India represents the world's largest laminate market and by establishing an HPL manufacturing base in the region and leveraging our global capabilities, we have the opportunity to bring a new level of product technology and customer service to the Indian market."
Zuckerman noted that although the brand first entered the market more than 70 years ago, its re-entry into India in 2010 allowed it to fully realize the scale of the market, its projected growth and its heightened demand for building materials.
Fletcher Building's operates six divisions - Building Products, Construction, Crane, Distribution, Infrastructure Products and Laminates + Panels across Australasia, Asia, the Americas, Europe, the Middle East and the South Pacific.
(Edited by Prem Udayabhanu)