New Zealand's biggest building product maker Fletcher Building has announced the signing of a conditional agreement to acquire all of the shares in Australian steel company Fielders Australia Pty Limited (Fielders), which is owned jointly by Hills Industries Limited and FSR Investments Pty Ltd, with respective stakes of 60 percent and 40 percent.
The acquisition, which is aimed at expanding Fletcher's geographic spread, is subject to due diligence, ACCC and FIRB approval, as well as the approval of Fletcher Building's BoD.
In a statement filed to the New Zealand stock exchange, Fielders said it has annual sales of about AU$275 million ($197 million) and employs 890 staff across Australia, without disclosing the purchase price.
Meanwhile, commenting on the financial terms of the offer, Hills Industries Ltd said in a statement that it expected to receive AU$105 million, including the repayment of loans and a dividend, from the sale of its 60 percent stake in Adelaide-based Fielders.
Completion is expected to occur late in Q2 of the current Australian financial year or early in Q3.