The deal will create a global leader in the high-pressure laminates sector, combining Formica’s global business with Netherlands-based Broadview’s Trespa (N), Arpa (IT) and Westag & Getalit businesses.

The sale includes Formica businesses in North America, Europe, and Asia, as well as its Homapal metal laminates business.

Formica’s UK operation at North Shields – the European headquarters for the group – has seen substantial recent investment by Fletcher in recent years including new offices, a new 8,000-tonne press, a continuous laminate press costing between £8m and £9m and new treater machinery, while the sales team has been doubled.

Some 500 staff work at the UK operation.

“The divestment of Formica completes our strategy to exit non-core businesses having already completed the sale of Roof Tile Group in November 2018,” said Fletcher Building CEO Ross Taylor.

“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.”

Broadview’s businesses include production and sale of composite panels – Trespa for façade cladding and laboratory furniture and Arpa for a variety of interior surfaces such as kitchens and retail furniture. Westag & Getalit (GE) manufactures worktops, doors and frames as well as wood-based panels.