Formica to sell flooring assets to unit of Shaw Industries Group

Formica Corp. 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, Wash., 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.