Article Number : 2610 |
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| Date | 10/23/2007 9:23:10 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=2610 |
| Abstract | Lawrence, Mass.—Two Germany-based investment companies have acquired Freudenberg Building Systems, owner of Nora rubber flooring, and while terms of the transaction were not disclosed, the new owners and the existing management team are moving forward with growth plans for the Nora brand... |
| Article | Lawrence, Mass.—Two Germany-based investment companies have acquired Freudenberg Building Systems, owner of Nora rubber flooring, and while terms of the transaction were not disclosed, the new owners and the existing management team are moving forward with growth plans for the Nora brand. Freudenberg, which generated sales of just over $225 million in 2006, was purchased by Capiton as majority shareholder, and L-Eigen-kapitalagentur (L-EA) from Freudenberg & Co., based in Weinheim, Germany, with North American operations headquartered in Lawrence, Mass. The Nora German management board will also hold shares in the company. “Because of its focus on other markets such as automotive and household products, Freudenberg had been looking for the right buyer for the Building Systems business and the Nora brand,” noted Dennis Schmick, Nora president, North America. “We’re enthused about the purchase by Capiton and L-EA because of their long-term orientation and growth strategy. “North America is one of the global markets in which Nora has emerged as a strong competitor in the commercial resilient flooring segment,” he explained, “and where the Nora brand has become known for both its inspired design possibilities and exceptional performance.” According to Freudenberg & Co., the current organizational structure of Freudenberg Building Systems will remain in place and the new owners have signed a 10-year rental agreement for production and administration facilities. “We see the acquisition of the Building Systems Business and Nora brand as an excellent platform for further growth,” said Manuel Hertweck, partner, Capiton. “We envision significant expansion of the company’s position as a premium supplier of rubber floor coverings in both existing and new markets. We will be supporting the investments planned by the management team and will be investigating whether individual measures to expand capacity could be accelerated. In a second phase, we see the chance to generate further growth for Nora by acquisitions under a buy and build strategy.” All personnel, including field sales representatives for Nora rubber flooring, remain the same, as does their contact information. For more information, call Nora’s North American headquarters at 800.332.6672. |