Fletcher Building headquarters in Auckland. Photo: Fletcher Building
- Fletcher Construction to be sold for $315.6m, potentially rising to $334.1m
- Sale includes Higgins, Brian Perry Civil and Fletcher Construction Major Projects
- The deal is subject to regulatory approvals.
Fletcher Building has reached a binding agreement to sell its construction division to major international firm Vinci Construction.
The initial sale price was $315.6 million, but could rise to just over $334m depending on the outcome of key contract negotiations.
The sale of Fletcher Construction Holdings included its New Zealand business units, Higgins, Brian Perry Civil and Fletcher Construction Major Projects.
"Over the past year, we have been clear that Fletcher Building's future lies in being a focused building products manufacturer and distributor, supported by a strong balance sheet and disciplined capital allocation," Fletcher Building chief executive Andrew Reding said.
"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," he said.
Reding was confident the sale to Vinci would be the right transaction for shareholders, Fletcher Construction itself and the broader New Zealand construction industry.
"I believe Fletcher Construction will find a strong home with Vinci, whose strengths are well aligned with the business, and which has a proven track record of successfully delivering major infrastructure projects globally."
The deal was subject to regulatory approvals, including from the Overseas Investment Office and the Commerce Commission.
Fletcher Building also expected to set aside $55-$65m for probable future claims relating to legacy construction contracts retained following the divestment.
However, it did not include any allowances for potential legal liability relating to the NZ International Convention Centre project.
The decision to sell Fletcher Construction followed a strategic review of the wider Fletcher Building business in 2025.
"Following our strategic review in 2025, we received strong inbound interest for the construction business," Reding said.
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