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 says in a statement.
The deal will be settled before the end of the year.
"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," says Paul Zuckerman, chief executive of Fletcher's laminates and panels division.
The assets being acquired are a three-year-old, 26,000sq m HPL facility with two presses and room for expansion, Fletcher says. It is located in the west of India, close to suppliers and with good distribution links to the main markets.
Shares of Fletcher rose 1.1% to $7.32 on the NZX and have climbed 18% this year.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Sky shares tank on subscriber warning
- Clinton shows she has bite in social media scrap with Trump
- Zespri ordered to reconsider collaborative marketing proposals
- Airways clarifies fee plans, sees average 1.2% rise per airline, up to 30% hike in capital budget
- Reserve Bank bans MediaWorks from media conferences after lockup leak
Most listened to
- NZVCA executive director Colin McKinnon on the deals and divestments of 2015
- Lee Buchheit of US law firm Cleary Gottlieb explains why the crisis in the eurozone may not be over yet
- BNZ CEO Anthony Healy on his bank's falling margins, dairy woes and the mortgage market
- Toulouse School of Economics professor Thomas-Olivier Leautier says electricity retailing would be more profitable if retailers offered real-time pricing but few do
- David Seymour says the government is hypocritical to believe EVs are next big thing but also need help