Fletcher Building Limited (NZSE:FBU) announced on it would explore a sale of plumbing supplies business Tradelink, but banking sources say it comes after the company has made unofficial efforts to sell Tradelink in past years. Likely buyers could include private equity firms and it may get about $200 million to $300 million for the business which analysts say is valued in its books at about NZD 150 million. One analyst said such businesses sell for about seven to eight times annual earnings before interest and tax.

Tradelink competes with the dominant player Reece in the plumbing supplies industry and sells products such as vanities, bathrooms, toilet fixtures and fittings for bathrooms, kitchen and laundries.