VINCI Construction has agreed to acquire Fletcher Construction, a division of New Zealand-based Fletcher Building Group, for NZ$315.6m ($184m).
The transaction could rise to NZ$334.1m depending on the resolution of several ongoing contracts. Subject to regulatory approvals, the deal is anticipated to close by the end of 2026.
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The agreement covers Fletcher Construction Holdings and its three business units in New Zealand: Higgins, which specialises in civil construction and road maintenance; Brian Perry Civil, focused on structures and foundations; and Fletcher Construction Major Projects, which manages large infrastructure developments for both public and private sector clients.
The South Pacific operations of Fletcher Construction are excluded from the transaction. They will be managed separately, as will responsibilities related to previously completed vertical construction projects such as the New Zealand International Convention Centre.
Fletcher Construction employs about 2,300 people across New Zealand and reports annual revenue of approximately €630m. Upon completion, these employees will transfer to VINCI Construction.
Fletcher Construction specialises in a broad range of infrastructure projects, including hydraulic, maritime, port, airport, railway, and road works. Additionally, it has a growing focus on the renewable energy sector.
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By GlobalDataFletcher Building has indicated it will retain responsibility for legacy construction matters not included in the deal and expects to make additional provisions of between NZ$55m and NZ$65m related to probable future claims on these retained contracts.
Fletcher Building managing director and CEO Andrew Reding said: “Having undertaken extensive market soundings, we are confident that the sale to VINCI is the right transaction for our shareholders, Fletcher Construction and the broader New Zealand construction industry.
“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.”
VINCI generated more than €900m in revenue in New Zealand during 2024.
With the acquisition, VINCI aims to expand its presence in New Zealand’s civil engineering and infrastructure market alongside its existing subsidiary HEB Construction.
