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Fletcher Building to purchase Australian roading firm

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Aug 20 NZPA - New Zealand's largest listed company, Fletcher Building, has reached an agreement to buy Australian Construction Products Pty Limited (ACP).

The sale was subject to some commercial conditions and was expected to be completed by September 1.

ACP, well known for its safety barriers and other roading products, was expected to record significant growth in the medium term and achieve a cost of capital return in the first year of ownership.

Fletcher infrastructure division chief executive Mark Binns said an increasing emphasis on road safety would drive higher demand for ACP products.

"ACP is a strong stand-alone business that is well positioned for the growth we expect to see in roading expenditure in Australia," he said.

ACP annual revenue exceeded $A20 million ($NZ25.04m).

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