The purchase price is subject to a potential increase to AUD334.1m, pending the final outcome of a small number of key contracts for the business currently under negotiation. In addition it is subject to typical adjustments for working capital and net debt. The acquisition is subject to regulatory approvals.
The transaction is structured as the sale of Fletcher Construction Holdings and its three New Zealand business units: national civil construction business Higgins; specialist civil, structures and foundation contractor, Brian Perry Civil, and Fletcher Construction Major Projects.
Fletcher Construction’s South Pacific operations are excluded from the transaction and are being dealt with separately as part of the wider strategic review process.
Commenting on the announcement, Fletcher Building MD and CEO, Andrew Reding, said: “Over the past year we have been clear that Fletcher Building’s future lies in being a focussed building products manufacturer and distributor, supported by a strong balance sheet and disciplined capital allocation. The sale of Fletcher Construction is a significant step forward in delivering that strategy, while continuing the work underway to simplify the portfolio, lower debt and improve shareholder returns.”
