Home > Latest News > Rival PE firms Prepare Bids To Acquire Embattled Tradelink

Rival PE firms Prepare Bids To Acquire Embattled Tradelink

PE firms are racing to put together competitive bids to acquire Fletcher Building’s plumbing and bathroom supplies business Tradelink.

Sydney’s Anchorage Capital Partners has hired Grant Samuel and EY to help prepare its bid for Tradelink, while Allegro Funds has enlisted Alvarez & Marsal to bat for them reported AFR.

Fletcher Building – which trades on both the Australian and New Zealand stock exchanges – revealed its plans to sell Tradelink which it acquired in 2012 in February.

At the time, Fletcher released its financial results for the six months to December 31, 2023. Its total revenue fell one per cent compared to the same time last year, coming in at NZ$4.24 billion (A$3.98 billion) but it posted a net loss after tax of NZ$120 million (A$113 million), down from a net profit after tax of NZ$92 million (A$86 million) in the second half of 2022.

Tradelink was blamed as the weak link in its portfolio. Tradelink hasn’t been able to compete against the mightier Reece Group in Australia. It led Fletcher to write down the value of the plumbing supplier by NZ$122 million (A$115 million) and put the business on the auction block.



Fletcher’s poor performance meant that its CEO Ross Taylor, and chairman Bruce Hassall, were also confirmed to be departing the business later this year.

As Anchorage and Allegro circle Tradelink and prepare their bids, media reports indicate that they are already scouting for talent to fill the top management roles should they be successful in their bids.

Acquiring Tradelink would bring with it certain clout as the business has been familiar to Australians for well over a century.

Tradelink is Australia’s oldest plumbing supply retailer, having opened more than 150 years ago.

It has more than 100 showrooms and 230 branches across the country.

You may also like
Struggling Paramount Announces Price Hike Again
Coles, Woolies Could Be Fined Billions Under New Code Of Conduct
M&K’s New Volkswoofer Limited To Just 100 Pieces Coming To Oz
Prezzee Gift Cards, Accepted By Aussie Retailers, Could Be Hit By Scammers
Kaspersky Security Software Banned Over Russia Links