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
Most listened to
- FMA's Rob Everett says confidence in capital markets is increasing
- NBR's Rob Hosking says housing and debt are the two things people haven't grasped about Budget 2017
- FNZC's John Norling on last week's star stocks and this week's outlook
- RedShield founder explains what makes his cyber service so attractive to Fortune 500 companies
- Rodney Hide thinks Judy McGregor should be persuading companies to increase gender diversity instead of legislating
- NBR Radio: best of the week ended May 26, with Grant Walker