Fletcher Building, a leading construction firm, has signed a deal to sell its construction division to global heavyweight Vinci Construction.
The sale price starts at a minimum of $315.6 million, with the potential to rise by an additional $18.5 million to $334.1 million, contingent on contracts currently under negotiation by the division.
Fletcher Building chief executive Andrew Reding said the company has consistently signalled over the past year its intent to evolve into a “focused building products manufacturer and distributor, supported by a strong balance sheet and disciplined capital allocation.”
“The sale of Fletcher Construction is a significant step forward in delivering that strategy, while continuing the work underway to simplify the portfolio, lower debt and improve shareholder returns.”
The divestiture covers its New Zealand operations, including Higgins, Brian Perry Civil, and Fletcher Construction Major Projects.
For Reding, the sale to Vinci benefits not just shareholders and Fletcher Construction but the broader New Zealand construction sector as well.
“Vinci knows Fletcher Construction well and has a deep commitment to New Zealand and the country’s infrastructure pipeline. That makes it an excellent long-term owner for the business and its people, customers and partners,” he said.
“I believe Fletcher Construction will find a strong home with Vinci, whose strengths are well aligned with the business and which has a proven track record of successfully delivering major infrastructure projects globally.”
The sale of Fletcher Construction stems from a comprehensive 2025 strategic review of the broader Fletcher Building operations.
“Following our strategic review in 2025, we received strong inbound interest for the construction business,” Reding said.
The agreement awaits regulatory approvals, including from the Overseas Investment Office and Commerce Commission, with conditions expected to be met by year-end.