Fletcher Building sells Tradelink for A$170m: A$10m deferred for about two years

Fletcher Building has sold its Australian plumbing and distribution business. Photo / Natalie Slade

Fletcher Building has sold Australian plumbing supplies and distribution business Tradelink for A$170 million (NZ$186m) and says it will use that to repay debt.

The company announced today it had struck an agreement to sell the business to Metal Manufactures. That is a subsidiary of United States-based Blackfriars Corporation.

Fletcher will get A$160m cash payable on the settlement at the end of next month.

“There are no regulatory or other conditions to be satisfied to complete the transaction. The remaining A$10m will be a deferred cash payment based on achieving separation milestones.

“Separation is expected to take up to two years and be completed by September 2026,” the company said.

Fletcher bought plumbing supplies and bathroom renovation retailer when it took over Crane Group in 2011.

Fletcher acting chief executive Nick Traber said: “We are pleased to have signed the Tradelink sale agreement in line with our target timing, and to have achieved an attractive outcome for both parties.

“We believe Metal Manufactures is an ideal proprietor for Tradelink given their long and successful history operating in the Australian trade distribution sector.

“The sale will enable us to concentrate our efforts on the performance and growth of Fletcher Building’s core businesses.”

Fletcher will use the money to repay debt.

Fletcher’s annual result is due out next week.

Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.