Fletcher Building has agreed to sell its Australian plumbing supplies and distribution business, Tradelink, for A$170 million.
The deal, which is set to be completed on September 30, 2024, involves a cash payment of A$160m (NZ$175m), with an additional A$10m deferred cash payment contingent on achieving separation milestones.
The sale price is on a cash and debt-free basis.
Fletcher Building expects to record a non-cash impairment of approximately A$32.5m for the Tradelink business in its FY24 accounts, and a non-cash loss of NZ$54m from the derecognition of the Foreign Currency Translation Reserve balance.
The decision to divest Tradelink was made in February 2024, after a strategic review.
Fletcher Building acting CEO, Nick Traber, said the sale would allow Fletcher to focus on its core businesses.
The FY24 annual results will be released on August 21, 2024.
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