Cleaning & Restoration Breaking News

Formica to Sell Flooring Assets to Unit of Shaw Industries Group

WARREN, N.J., Jan. 26 /PRNewswire/ -- Formica Corporation today announced that it has reached an agreement to sell the equipment assets of its Formica Flooring business to the Shaw Diversified Services, Inc. unit of Shaw Industries Group, Inc. The equipment, which is located in a leased manufacturing facility in Algona, WA, is being sold to Shaw for cash and the assumption of certain liabilities. Formica is not transferring its brand name, products or designs to Shaw.

After closing of the transaction, which is expected during the current quarter, Formica will withdraw from laminated flooring manufacturing in North America following a transition period to permit Formica to meet its obligations to its customers.

The closing of the sale to Shaw is contingent upon the approval of the United States Bankruptcy Court for the Southern District of New York. Formica expects to file a motion for the Court's approval on January 26th.

"Formica's decision to exit the laminate flooring business in North America reflects the competitive nature of the laminate flooring business and the changing dynamics of the North American flooring industry," said Frank A. Riddick, III, President and Chief Executive Officer. "Not being a vertically integrated producer in this highly competitive business, we reluctantly concluded that it would not be economically viable for Formica to remain as a niche, stand-alone manufacturer. Our flooring business represents a very small segment of our sales. This, along with confirmation of our Plan of Reorganization under Chapter 11, convinced us that a profitable future for Formica lies in emphasizing our businesses which give us the greatest opportunity for growth, especially in the high pressure laminate business where we benefit from our standing as a global leader."

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.



Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.


Beginning April 21, Google will start judging websites based on their mobile friendliness. What exactly does this mean to you cleaning website? Find out in the latest edition of The Hitman Advertising Show, which will also cover tips and suggestions on getting mobile compliant.
More Podcasts

ICS Cleaning Specialist Magazine


2015 April

The April ICS issue features content on concrete polishing, green cleaning, air duct cleaning, injection sprayers and new products.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive


The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products


Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view


facebook_40.png twitter_40px.png youtube_40px.png


Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view