1 Nov 2018

Fletcher sells off roofing business for $60m

4:28 pm on 1 November 2018

Fletcher Building has sold its roof products company Roof Tile Group for $59.8 million as it slims down and quits non-core business.

Fletcher Building announces a $486 million increase in the projected losses for Fletchers' troubled Building and Interiors (B&I) division on 16 major construction projects.

Fletcher Building announces a $486 million increase in the projected losses for Fletchers' troubled Building and Interiors (B&I) division on 16 major construction projects. Photo: RNZ / Dan Cook

The operation has 450 staff and manufacturing plants in Asia, Europe and the United States, and has been bought by the Canadian roofing company IKO.

Fletcher Building's chief executive Ross Taylor said the sale fits its restructuring plan.

"The sale is in-line with Fletcher Building's five year strategy to divest our international operations to focus our capital and capability behind our New Zealand and Australian businesses, with building products and distribution at our core," Mr Taylor said.

The company said it expected to lose $15m to $20m on the sale.

Mr Taylor said it was still working to sell its Formica laminate product business by next year, but the use of the sale proceeds for both companies was not yet decided.

"Once both sales have been completed we will review our capital structure and capital requirements and then determine how the funds will be allocated."

Fletcher Building is reconstructing itself after it racked up losses of close to $1 billion over the past two years caused by the well publicised problems of its troubled building and interiors division on big commercial projects.

Last month it made an abortive bid to buy steel products manufacturer Steel & Tube for $280m, which was rebuffed by the target company.

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