Fletcher bosses' tour aims to settle in takeover

David Worley. Photo / Supplied

Fletcher Building bosses are on a six-week roadshow to meet and greet 4100 Crane Group employees in New Zealand and Australia.

Australian Jonathan Ling, Fletcher chief executive, and New Zealander David Worley, Crane's new chief executive, are visiting dozens of the businesses, making presentations to staff who are getting used to the Kiwi company's style of business.

The aim is to settle in Fletcher Building's $1.3 billion Crane Group takeover, the largest on-market hostile strike by a New Zealand-headquartered listed business on an ASX corporate.

Worley is one of Fletcher's most senior executives, having taken Ling's job at the Laminex corporate headquarters in Melbourne four years ago when Ling took over from Ralph Waters, now the chairman.

"But it's not continuous. We have day jobs as well so we're doing this on and off over a period of weeks," said Worley of the roadshow before he and Ling left for the Manawatu.

Now that Fletcher has snared Crane, it is examining the beast, spotting synergies, familiarising itself with the size and scale of operations, looking for expansion breaks and working out what could be done better.

"As you know, we didn't have the opportunity to do a thorough due diligence because of the nature of the takeover," says Worley of Fletcher's position, having bid strongly and confidently for a business it was yet to become closely acquainted with.

"We've not had any strong negative surprises. I'm very pleased with the good management team," he says, naming Pipelines divisional executive manager Robert McLeod - who has just taken over from Bill Wood who retired - Ivor Timmins, executive general manager of trade distribution, and Stephen Robertson, executive general manager of industrial products.

Worries about occupational safety and health at some big manufacturing plants and assessing opportunities in the lucrative South Island irrigation market, bidding for part of the Government's ultra-fast broadband scheme and coal seam gas projects are just some of the issues on Worley's mind.

Crane is already the biggest manufacturer and distributor of plastic pipeline systems in Australia and New Zealand so Worley sees big opportunities in growth sectors such as communications, energy, farming and elsewhere.

The roadshow is to settle staff fears about ownership changes and communicate what Worley referred to as "the Fletcher Building way".

Businesses visited include Tradelink, iPlex, Mico, Coreys, Mico Metals, Austral Wright Metals, MasterTrade, Hudson Building Supplies, Northern's, Raymor, Gatic Milnes and others.

"It's a terrific opportunity for Jonathan and I to stand up in front of the staff and answer their questions, give them a sense of direction and give them an idea of opportunities. It's an opportunity for everyone to hear the same story and it's a way to trigger discussions," Worley said.

"In Australia, there's not the same level of familiarity with Fletcher Building as there is in New Zealand. Some of our presentation is obviously about the heritage and background of Fletcher so it's introducing the company to them.

"We talk about the Fletcher Building way, the philosophical approach, about how we run the business. We are honest with them."

He said health and safety was a focus, citing concerns about injuries such as lacerations, bruising, knocks and twisted ankles.

"The safety record at Crane has been very much improved in the last three or four years," he said, mentioning concerns about a Penrith copper tube manufacturing plant employing up to 170 staff.

Crane's head office in Sydney has shrunk from 28 staff to four and Worley said this was part of the integration into Fletcher where Crane will become a sixth division alongside building products, distribution, infrastructure, steel, and laminates and panels.

Crane's head office will shift into the Zenith Centre at Chatswood in the next two or three months, joining other Fletcher businesses in the building including Stramit, Rocla Pipeline Products and Rocla Quarry Products, a team of Fletcher corporate staff.

Worley said Crane's name would not disappear, because Fletcher's sixth division would carry it.

However, Crane has been delisted from the ASX.

David Worley

* Position: Crane Group chief executive.
* Home: Left South Yarra, Melbourne, for Sydney.
* Office: North Sydney.

Career

* Qualifications: BCom, MBA, graduate of University of Auckland.
* Age: 58.
* Born: Whangarei.
* Secondary school: King's College, Auckland.
* Other jobs: Commercial trainee, Air New Zealand.
* General manager, James Hardie Industries.
* General manager, clinical support, Auckland Healthcare Services.
* General manager retail, Whitcoulls Group.
* 2002-07: Chief executive PlaceMakers, Auckland.
* 2007-2011: Chief executive Laminex, Melbourne.
* April: Joined Crane Group.