Fletcher seen as potential buyer

Fletcher Building and Australasian private equity funds are potential buyers for the privately-owned specialist glass manufacturer Metropolitan Glass.

Fletcher, the country's third biggest listed company, has expressed interest in buying a glass firm but yesterday Metropolitan Glass' manager and part-owner Andrew Smith said he was "absolutely not able to make any comment" on reports the company was for sale.

However, a private equity professional confirmed the company, founded in 1987, was indeed on the block.

"There are obvious players around in Australia and New Zealand who will be looking at this business and it won't just be a private equity play, there are trade players in New Zealand who could be interested in this as well," said the source.

The Australian media reported yesterday that Metropolitan Glass was being eyed by private equity firms and the asking price for the Auckland-based company was A$300 million ($367 million).

Metropolitan Glass is one of the largest suppliers of glass to the building industry.

The company's shares are largely owned by directors Smith, John Bedogni and Cameron Gregory.

Fletcher Building's incoming chief executive, Jonathan Ling, said yesterday that the company was looking for acquisition opportunities among suppliers of construction materials it did not already have exposure to.

"At the moment, glass is not a core part of our business," he said. "We could be looking at glass."

Metropolitan Glass has five manufacturing plants in Auckland, Tauranga and Wellington.

Its products include toughened safety glass, laminated glass and insulated glass units.

Should Metropolitan Glass be snapped up by an Australian private equity or trade buyer, it would add to the steady stream of New Zealand companies which have been bought by Australians in recent months.

Yesterday, Waste Management's shareholders voted to accept Transpacific's "amalgamation" offer.

Last month, Goldman Sachs JB Were Private Equity and Quadrant Capital took 51 per cent of outdoor clothing company Kathmandu for $275 million, and Pacific Equity Partners recently bought snack foods business Griffin's for about $391 million, and poultry company Tegel late last year.