TORONTO, Ontario — IKO Industries Ltd. has acquired the operations of the Roof Tile Group from New Zealand-based manufacturer and builder Fletcher Building for $39 million.
Roof Tile Group manufactures metal roofing tiles for global sales and distribution under a number of brand names, including Decra and Gerard. The deal to acquire RTG was finalized Nov. 1 in Auckland.
Fletcher Building said in a release posted Friday to its website that it sold Roof Tile Group for $39 million.
According to an IKO release, the purchase will expand IKO's global manufacturing and operations footprint to include production sites in New Zealand, Hungary, Malaysia, and the United States; and more than 500 employees to IKO's worldwide team.
"We are pleased to welcome RTG and its employees to the IKO family," stated Hartley Koschitzky, IKO's co-chairman. "This acquisition represents an excellent opportunity to continue with our global growth strategy, and to expand our metal roofing business beyond our partnership with Metrotile NV, particularly in the North American market. We are looking forward to growing and building RTG's business and learning from the knowledge and experience of our new team members in the metal roofing industry."
The company indicated that the immediate future will see RTG continue to run its operations on a 'business as usual' basis, while the company focuses on onboarding its new employees and gaining familiarity with RTG's operations.
Fletcher Building CEO Ross Taylor said: “We are pleased to complete the RTG divestment in a timely way. The sale is in-line with Fletcher Building’s five-year strategy to divest our international operations to focus our capital and capability behind our New Zealand and Australian businesses, with building products and distribution at our core. The divestment process for the Formica business is progressing well and we remain confident that the sale will be completed in FY19.”