Sims buys out New Zealand JV partner

Global metals recycler Sims Metal Management purchased Fletcher Building's 50pc share of the companies' Sims Pacific Metals joint venture in New Zealand.

The purchase price is expected to be in the range of NZ$55-60mn ($37-41mm) after accounting for a working capital adjustment that will be finalized post-acquisition.

Auckland, New Zealand-based Sims Pacific Metals was established in 1992 as a 50-50 joint venture between the two companies. The company operates eight metals recycling locations with two shredders across New Zealand, according to its website.

"In line with Fletcher Building's strategy to divest non-core businesses, the decision was made to exit the joint venture and focus the company's steel division operations on its manufacturing and distribution activities," Fletcher Building said.

Auckland-based Fletcher Building operates commercial, public and residential construction companies as well as building products businesses with operations across New Zealand and internationally.