Fletcher Building Divests Tradelink In a 112 million USD Deal with Metal Manufactures

Fletcher Building

Australia: Fletcher Building Limited has entered into an agreement to sell its Australian plumbing supplies and distribution business, Tradelink, to Metal Manufactures Pty Limited (MM) for A$170 million (approximately $112 million). The deal includes a cash payment of A$160 million (approximately $105 million) at settlement, expected by September 30, 2024, and a deferred 6 million USD payment contingent on achieving separation milestones by September 2026. 

Fletcher Building decided to divest Tradelink following a strategic review, determining that Tradelink, while strong in the Australian market, does not align with the company’s long-term focus. Acting CEO Nick Traber expressed satisfaction with the transaction, noting that MM is well-suited to take over Tradelink. The sale proceeds will be used to reduce debt, and Fletcher Building’s FY24 results are scheduled for release on August 21, 2024. 

The transaction is on a cash and debt-free basis, with net proceeds adjusted for working capital, transaction costs (approximately 6 million USD), and separation costs (approximately 13 million USD) over 24 months).  

Source: Fletcher Building