Fletcher Building inks first acquisition since December 2008
Fletcher Building is closing in on its first acquisition since December 2008, having reached agreement to acquire Australian Construction Products (ACP).ACP provides safety barrier systems and associated roading products in Australia and has revenue in ex
Duncan Bridgeman
Fri, 20 Aug 2010
Fletcher Building is closing in on its first acquisition since December 2008, having reached agreement to acquire Australian Construction Products (ACP).
ACP provides safety barrier systems and associated roading products in Australia and has revenue in excess of $20 million.
At this stage the price of the proposed acquisition remains confidential. However, Fletcher Building chief executive Jonathan Ling indicated at the company’s results briefing this week that it was looking at spending between $10-50 million on suitable purchases.
Fletcher spokesman Philip King told NBR the ACP deal would be toward the top end of that range.
Fletcher Building said the business was expected to record "significant growth" in the medium term and achieve a cost of capital return in the first year of ownership.
The company said the deal is subject to some commercial conditions but is expected to be completed on September 1.
Infrastructure division chief executive Mark Binns said ACP was a strong stand-alone business, well positioned for the growth in roading expenditure in Australia.
“Additionally, increasing emphasis on road safety will drive higher demand for products in our New Zealand business, CSP Pacific, which is well known for its roading barriers, and associated services,” Mr Binns said in a statement.
Fletcher this week reported its full-year result – a $272 million net after-tax profit, although its net profit before unusual items fell 4% from $314 million to $301 million.
At ebitda level, the $719 million result was down slightly on the consenus of analyst forecasts surveyed by data provider Capital IQ.
Duncan Bridgeman
Fri, 20 Aug 2010
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