Fulton Hogan in talks to buy Masterton contractor's assets
Wairarapa company in early stage discussions over selling assets.
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Fulton Hogan is in talks with Bruce Buchanan to buy some of the Masterton-based contracting firm's assets.
The company's strong balance sheet in the past year is paving the way for acquisitions.
Bruce Buchanan is the biggest supplier of construction aggregates in Wairarapa and also provides civil construction services, including roading, telecommunications cabling and water works,
Fairfax Media yesterday reported the Masterton-based firm laid off 20 staff ahead of a planned shutdown of its construction division, and was in talks to sell some assets.
"Fulton Hogan and Bruce Buchanan are at an early stage of discussions with respect to the sale of some assets of BBL," a Fulton Hogan spokesman says. "Until agreement is reached it is not appropriate for us to comment."
Christchurch-headquartered Fulton Hogan yesterday reported a 9.7% increase in annual profit as building activity in Christchurch and Auckland offset slower Australian work.
The company bolstered its balance sheet after completing an asset sale programme, and completing the buyback of former cornerstone investor Shell's shareholding.
Managing director Nick Miller says the company had enough headroom "for the right opportunities," and had focused on organic growth in recent years.
Mr Miller expects a steady year in 2016 for the New Zealand business, though beyond that a downturn in dairy prices will probably lead to a softer infrastructure market in the country's regions.
(BusinessDesk)
Paul McBeth
Wed, 16 Sep 2015
Wed, 16 Sep 2015
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Fulton Hogan in talks to buy Masterton contractor's assets
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