2 Feb 2016

Fletcher Building to buy Higgins road construction company

12:44 pm on 2 February 2016

New Zealand's largest contruction company, Fletcher Building, is to buy road building and maintenance firm Higgins Group for $315 million.

A screengrab from a Fletcher Building video showing construction work.

Fletcher Building construction work. Photo: SUPPLIED / Fletcher Building video

Higgins is the third largest road construction business in New Zealand, with 16 branches, and also operates quarries, bitumen and asphalt plants.

The deal excludes Higgins' ready mix concrete and property businesses.

The company is also seeing strong growth in Fiji where it recently won two major contracts.

Fletcher Building will use the proceeds of a recent asset sale and debt facilities to buy the firm.

The purchase is expected to be settled by the end of June, and needs approval from the Overseas Investment Office and Commerce Commission.