Fletcher Building has agreed to buy a laminates manufacturer in the Indian state of Gujurat for 365 million rupees ($8.2 million) to expand its operations in the sub-continent.
Fletcher's local affiliate, Formica Laminates (India) Private, will acquire the assets of the decorative laminate manufacturing business of listed Indian manufacturer Well Pack Papers & Containers, it said in a statement. The deal will settle before the end of the year, it said.
"India represents the world's largest laminate market and by establishing an HPL manufacturing base in the region and leveraging our global capabilities, we have the opportunity to bring a new level of product technology and customer service to the Indian market," said Paul Zuckerman, chief executive of Fletcher's laminates & panels division.
The assets being acquired are a three-year-old, 26,000 SQM HPL facility with two presses and room for expansion, Fletcher said.
It is located in the West of India, both close to suppliers and with good distribution links to the main markets, it said.
Shares of Fletcher rose 1.1 per cent to $7.32 on the NZX and have climbed 18 per cent this year.