Fletcher Building's Tradelink draws interest from turnaround specialists

Written By Keven Chen

Plumbing supplies business Tradelink, a subsidiary of Fletcher Building, is on the market with bids expected by Friday. 

Transaction snapshot

  • Deal value: N/A

  • Deal multiples: N/A

  • Deal type: Buyout

  • Investors: Anchorage Capital Partners, Allegro Funds

Both Anchorage Capital Partners and Allegro Funds are preparing bids for Tradelink. Each firm is actively recruiting management talent in anticipation of potentially taking over the operation.

Tradelink has recently been overshadowed by its larger competitor, Reece Group. In response to a reported net loss of $NZ120 million ($112 million), Fletcher Building announced the divestment in February. The company, which is dual-listed and valued at $2.2 billion, is also seeing major leadership changes with CEO Ross Taylor and chairman Bruce Hassall set to leave later this year.

Tradelink's financial struggles have led to a significant write-down of its carrying value by $NZ122 million as it entered the market. Allan Gray Australia, a major shareholder, supports the sale.

Keven Chen
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