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Fletcher Building Limited ( (FRCEF) ) has issued an announcement.
Fletcher Building has agreed to sell its New Zealand Construction Division to global player VINCI Construction for $315.6 million, with the price potentially rising to $334.1 million depending on the outcome of several key contracts. The deal, which covers the Higgins, Brian Perry Civil and Major Projects units but excludes South Pacific operations and legacy vertical construction liabilities such as the NZICC, marks a major step in Fletcher Building’s strategy to focus on building products, reduce debt and simplify its portfolio. Completion is targeted before the end of 2026, subject to regulatory and contractual approvals, and around 2,300 employees will transfer to VINCI, providing continuity for customers and project partners. Fletcher Building will retain certain legacy project responsibilities and expects to book additional provisions of $55 million to $65 million for probable future claims on retained construction contracts, underscoring the ongoing cost of exiting non-core activities even as the divestment strengthens its strategic focus.
More about Fletcher Building Limited
Fletcher Building Limited is a New Zealand-based building products manufacturer and distributor, with operations focused on supplying materials and related services to the construction and infrastructure sectors. The company has been reshaping its portfolio toward core building products, emphasising a stronger balance sheet and disciplined capital allocation to enhance returns for shareholders.
See more insights into FRCEF stock on TipRanks’ Stock Analysis page.