On Tuesday, Fletcher Building announced changes to its business portfolio. These changes included the purchase of Higgins, the sale of Rocla and a restructure into five divisions. To see the announcement and read the New Zealand Herald article, click here.
Fletcher Building has purchased most of Higgins assets, including asphalt and bitumen plants, road construction and maintenance operations in Fiji, aggregate business including 16 operational quarries, and other related businesses including the manufacture of traffic signs and bitumen tanks and sprayers. Excluded from the deal are Higgins’ ready-mix concrete and property businesses. Fletcher Building has paid $315 million for this acquisition.
As Higgins is the third-largest road construction and maintenance company in New Zealand, they are a “logical choice” for Fletcher’s development.
Fletcher Building CEO Mark Adamson is quoted in Stuff as stating:
“We have signaled for some time our desire to extend our activities into the road construction and maintenance sector, where we have identified significant opportunity.”
The new structure of Fletchers will be split into five divisions, namely:
- Building Products
- Residential and Land Development
Keep posted on our blog to stay up to date with any further developments to the restructure of Fletcher Building.