Fletcher Building is set to go all in on the building materials market after the company confirmed it is undertaking the sale of Fletcher Construction to major international firm VINCI Construction.
According to Fletcher Building, the current purchase price is $315.6 million, but it could rise by $18.5 million, bringing the total to $334.1 million. This increase would be subject to the outcome of key contracts, which Fletcher Building said are “under negotiation”.
Fletcher Building managing director and chief executive officer Andrew Reding outlined how the deal will reshape the company’s future with a heavy focus on building materials.
“Over the past year, we have been clear that Fletcher Building’s future lies in being a focused building products manufacturer and distributor, supported by a strong balance sheet and disciplined capital allocation,” he said.
“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 structure of the deal has been reported as Fletcher Construction Holdings together with its three New Zealand business units including Higgins, Brian Perry Civil and Fletcher Construction Major Projects. The company noted that its South Pacific operations are not included in this sale and are currently subject to a broader “strategic review process”. Fletcher Building will also remain responsible for residual works and responsibilities that are part of Fletcher Construction’s completed legacy vertical construction projects and “certain historic civil construction projects”.
The deal is subject to regulatory approvals with a timeline for the deal’s closure anticipated by the end of the 2026 calendar year subject to these approvals being granted and conditions met.
Reding said VINCI was the ideal partner for the Fletcher Construction businesses to transition to following the sale.
“Following our strategic review in 2025, we received strong inbound interest for the Construction business,” he said.
“We are confident that the sale to VINCI is the right transaction for our shareholders, Fletcher Construction and the broader New Zealand construction industry.
“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.
“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 transaction would make VINCI a considerable presence in New Zealand’s construction sector. Fletcher Buildings’ specialisation in hydraulic, maritime, port, airport, railway and road works will bolster VINCI’s capabilities.
“Alongside HEB Construction, this acquisition will enable VINCI Construction to become a major player in New Zealand’s dynamic infrastructure construction market,” VINCI wrote in its release.
“It should be recalled that the VINCI Group generated revenue of over €900 million in this country in 2024.”
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