New French furniture giant to rise from merger

The P3G Group and Alsapan announced their agreement after months of negotiations and a new company called Alpagroup will be formed later this year one approval is gained from competition authorities.

One of the drivers behind the agreement was to secure supplies of particleboard. P3G Group operates two particleboard factories - CFP in Corbenay and CF2P in Lure – which supply Alsapan, a large producer of kit furniture, laminate flooring and worktops.

“In fifteen years, a third of French panel factories have disappeared, hence this crisis,” said Cécile Cantrelle, president of Alsapan.

Together, the companies employ 4,300 employees and operate 19 factories.

“We have known each other for a long time, we are competitors but also customers and suppliers, and we noticed during our discussions that the addition of our two groups forms a very interesting commercial and industrial unit to support our customers in a context of market consolidation,” said Jean-Charles Parisot, president of P3G Group.

The new company will have a 50/50 shareholding and shared control, with a stated aim to produce more than 10 million pieces of furniture per year and 12 million m2 of parquet and floor coverings.

Alsapan has an annual turnover of €245m, supplying the likes of Ikea and Leroy Merlin. P3G Group has an annual turnover of €320m.