October 5, 2007 — LAWRENCE, MA — With the purchase of Freudenberg Building Systems, manufacturer of nora(R) Rubber Flooring, signed by two investment firms, the new owners and the existing management team are advancing growth plans for the nora brand.
The business, which generated sales of 160 million euros in 2006, was purchased by the German investment companies — capiton as majority shareholder and L-Eigenkapitalagentur (L-EA) — from Freudenberg & Co., based in Weinheim, Germany, with North American operations headquartered in Lawrence, MA. The nora(R) 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(R) brand,” notes 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(R) Rubber Flooring has emerged as a strong competitor in the commercial resilient flooring segment, 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 the nora(R) brand as an excellent platform for further growth,” comments Manuel Hertweck, partner of capiton AG. “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(R) by acquisitions under a buy and build strategy.”
All personnel including field sales representatives for nora(R) rubber flooring remain the same, as does their contact information. Questions may be directed to the North American headquarters office at 1-800-332-NORA.
nora(R) Rubber Flooring has operated in the United States for more than 30 years and is the world’s largest manufacturer of commercial rubber floor covering systems. The company has been designing and manufacturing nora(r) Rubber Flooring for more than 50 years, meeting a wide range of functional performance requirements while paying close attention to the aesthetic aspects of interior design. For additional information, contact nora(R) Rubber Flooring at 1-800-332-NORA or visit the company’s web site at www.norarubber.com.