Sale sign up on Stevenson

One of the biggest independently owned building products businesses, Stevenson Building Products, is on the block.

The 88-year-old Auckland firm pulled in about $100 million of revenue in its 2004 financial year. It supplies products including concrete and masonry, and competes with Holcim, Allied Concrete and Fletcher Building's Firth.

It is a division of the Stevenson Group, a business developed by Sir William Stevenson and owned by trusts associated with his sons, Bill, Jack and Ross.

Sir William (1901-83) features in a Business Hall of Fame for his efforts.

Group managing director John Rae said the group was retaining quarry, mining, farming, property and engineering interests but the family believed it had "done as much as it could" in building products.

The business needed an injection of expertise and enthusiasm - and Rae also noted there were easier ways to make a buck than competing with "a resurgent Fletcher Building". PricewaterhouseCoopers is handling the sale, with indicative bids due early next month.

Corporate finance partner Mark Averill is managing the process and said: "There's likely to be interest from across Australasia."

He said the business could be attractive to an existing player seeking to consolidate or an Australian business seeking to enter the local market.

Existing players may need to show that an acquisition would not be anti-competitive.

The head office of the business is in East Tamaki.

Most of the 300 staff are in Auckland, but there are also operations in Whangarei and Christchurch.

According to a PricewaterhouseCoopers flyer for the sale, Stevenson Building Products specialises in concrete, masonry, precast and terrazzo, supplied for use in four areas: residential, landscaping, commercial and infrastructure.

The flyer says: "Few opportunities have arisen previously to acquire a diversified building products business of this size in New Zealand."

The Stevenson Group plans to retain ownership of the firm's land.

Timetable

* Indicative bids: early June.
* Short list: mid-June.
* Due diligence: mid-June.
* Final bids: late July.
Source: sales flyer