Fletcher Building sells wire business to United Industries, flags up to NZD23m loss
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The news: Fletcher Building has sold its Fletcher Reinforcing and Wire business for NZD15.7 million ($12.9 million) to United Industries, with the deal expected to close before the end of 2026.
The context: CEO Andrew Reding said the divestment was part of the group’s strategy to focus on return on invested capital, adding that the Reinforcing and Wire business did not align with its targeted return profile.
The sale’s completion is subject to approval from the New Zealand Commerce Commission and third-party consents, however Fletcher expects these conditions to be satisfied before the end of the year.
The group also flagged a loss on sales of between NZD20 million and NZD23 million upon completion of the transaction.
What they said: "Fletcher Reinforcing and Wire is a well-regarded business with strong brands. However, it is not aligned with our targeted return profile, and we do not see a clear path for it to achieve satisfactory levels of contribution within an acceptable timeframe,” CEO Andrew Reding said.
“We therefore believe a sale at this time is the right action, and that United is a more appropriate long-term owner to support the business going forward,” he added.
The source: ASX
