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Fletcher Building (ASX:FBU) has sold off its plumbing division, Tradelink, to Metal Manufactures Pty Ltd for a neat $170M.
Only $10M is locked up in performance milestone agreements, meaning Fletcher is effectively netting $160M without question or condition for the company.
Notably, the transaction won’t be finalised until September 2026 – how long Fletcher expects it will take to fully separate itself from Tradelink. The plan has been in motion since February of this year.
That decision followed a review into the company’s overall structure where the divestment potential was first identified.
Fletcher described Tradelink as “not a natural fit with [our] long-term strategic focus” on Monday. Management further elaborated that the funds from the deal will help pay off debt.
“We believe MM is an ideal proprietor for Tradelink given their long and successful history operating in the Australian trade distribution sector,” FBU acting CEO Nick Traber said.
“The sale will enable us to concentrate our efforts on the performance and growth of Fletcher Building’s core businesses.”
Fletcher last traded at $2.84.
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