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Fletcher Building to Acquire Australian Construction Products

Fletcher Building Limited (“Fletcher Building”) announced today that it has reached agreement to acquire all of the shares in Australian Construction Products Pty Limited (“ACP”). The business is expected to record significant growth in the medium term and achieve a cost of capital return in the first year of ownership. Consideration will be a mix of cash and shares in Fletcher Building. The transaction is subject to some commercial conditions which are expected to be satisfied to allow for completion by 1 September 2010. ACP is a market leader in the integrated supply of safety barriers and associated roading products in Australia with revenues in excess of $A20 million. Through its CSP Pacific business Fletcher Building already successfully operates in New Zealand in engineering, manufacturing and distribution of roading barriers. Infrastructure division chief executive Mark Binns said: “ACP is a strong standalone business that is well positioned for the growth we expect to see in roading expenditure in Australia. Additionally, increasing emphasis on road safety will drive higher demand for products in our New Zealand business CSP Pacific, which is well known for its roading barriers, and associated services. The acquisition of ACP also will enable us to launch further products into the much larger Australian market.