Auckland, 29 June 2018
Fletcher Building today announced it had reached agreement to sell its 50 per cent stake in the Sims Pacific Metals joint venture to Sims Metals Management for NZ$42 million.
The purchase price is subject to a working capital adjustment which will be finalised post acquisition. Based on current estimates, total proceeds of the divestment are expected to be between NZ$55m and NZ$60m.
Sims Pacific Metals was established in 1992 as a 50/50 joint venture between Fletcher Steel and Sims Metals Management.
Sims Pacific Metals is New Zealand’s largest metal recycling company, operating a number of sites across the country converting scrap metal products into recyclable materials.
In line with Fletcher Building’s strategy to divest non-core businesses, the decision was made to exit the joint venture and focus the Company’s Steel Division operations on its manufacturing and distribution activities.