How to rescue an icon : an acquisition by Fletcher Building - Short version

Abstract

(Please check with the University of Auckland Business Case Centre to access this case study). Formica, a manufacturer of laminated counter tops, founded in the United States, and a struggling company. It was bought by Fletcher Building in 2007 to build Fletcher's business and bolster their asset base, provide new global reach into foreign markets, especially Asia and North America and offer operational efficiencies in their laminate portfolio. Fletchers ran into difficulties at Formica, with little satisfactory production of laminates as the company was caught by the Global Financial Crisis in 2008. In 2009 Fletcher management decided to consolidate Laminex and Formica, under Project Cabernet to put that part of the business into profit again. Includes questions for discussion