Has the tide finally turned for struggling firm?

At last some good news for Fletcher Building. The deal to sell Formica still has some boxes to tick but it does represent progress for a company looking to reset strategy after a disastrous couple of years.

And at least Fletcher will get more than it paid for Formica when it bought the business 11 years ago.

In 2007 former Fletcher chief executive Jonathan Ling bought Formica for $947m to create an international division that also included Australian wallboards manufacturer Laminex Group.

But the acquisition was bedevilled from the start and described as a “bloody scandal” by one former Formica executive who accused Fletcher of overpaying, poor timing and choosing the wrong target company.

Two years later Fletcher had taken $200m in write-offs after half Formica’s revenue evaporated after the global financial crisis.

Ironically it was Ling’s replacement at Fletcher, Mark Adamson, who was credited for turning around Formica when he was in charge of the group’s laminates and panels unit.

Formica’s earnings improved and Adamson became boss of Fletcher, a move that backfired dramatically as losses mounted from its Buildings + Interiors division.

It’s a long road to recovery for Fletcher but the Formica sale will allow the company to focus on domestic and Australian businesses and supplying building materials for other construction firms.

The announcement of reinstating dividends will have cheered investors but the board needs to take care of its balance sheet first.

Has it turned the corner? Perhaps, but Fletcher is still not out of the woods, especially if building markets deteriorate further. It also needs to get the Formica sale over the line.

But after years of shareholder wealth destruction, finally Fletcher appears to have caught a break.