WEINHEIM, Germany (Oct. 9, 2007) — Freudenberg Group has sold its Building Systems division, which makes nora-brand rubber flooring, to two German investment companies.
The new owners — majority shareholder Capiton A.G. and L-Eigenkapitalagentur — said they intend to keep the current organizational structure of the business and have signed a 10-year rental agreement for production and administration facilities. The division posted sales of $225.5 million last year.
The Building Systems Business operates a facility in Lawrence, Mass.
Manuel Hertweck, a partner of Capiton, said the company expects significant expansion of its 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," he said. "In a second phase, we see the chance to generate further growth for nora by acquisitions under a buy and build strategy."