Sharechat Logo

Fletcher Building agrees to buy Fielders

Tuesday 7th October 2008

Text too small?
Fletcher Building, the biggest building products company on the NZX 50 Index, agreed to buy Adelaide-based Fielders Australia, adding a steel components business with A$275 million in annual sales.

Fielders produces rolled formed steel building components for commercial, industrial and residential construction, Flecther said in a statement. No price was disclosed.

The purchase "would complement our existing business units in Australia and New Zealand," chief executive Jonathan Ling said.

Fletcher chairman Rod Deane last month said the diversity of Fletcher's businesses across geographic and sector groups, and a strong balance sheet should help buffer the company from an economic downturn. He predicted the impact of a housing slump in New South Wales would be offset buy more demand in Queensland and Western Australia.

The company's shares fell 2.3% to NZ$6.35. In the pastb three months they've climbed 2%, outpacing the NZX 50 Index's 4% decline.

Fielders employs 890 people in Australia, the statement said. It is currently owned 60% by Hills Industries and 40% by FSR Investments.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Fletcher Building faces probe into plasterboard supply deals
Fletcher closes Christchurch plasterboard plant after finding asbestos
Fletcher Building names Charles Bolt as general counsel, replacing Farrell
Fletcher beats estimates with $326M FY profit as NZ revives, Australia stays flat
Fletcher executive Worley leaves as underperforming Crane unit brought in-house
Fletcher puts strategy under microscope seeking $70M annual gain, will shed jobs
Fletcher Building 1H profit edges up
Fletcher Building capital notes rollover at 5.4 percent from 8.9 percent
Fletcher Building offloads CSP Coating galvanised steel unit
Fletcher not abusing its role running Canterbury home repairs, EQC says